Several Producers in Industry a Developed an Improved Technology That

question 118

Multiple Choice

Several producers in industry A developed an improved technology that reduces the quantity of resources used to produce a given output. Which of the following would be expected?

• A) The per-unit costs of production of the firms adopting the technology would increase.
• B) In the short run, economic profits would be earned by the earliest firms adopting the technology.
• C) Product price would immediately fall to the minimum average total cost of the firms quickly adopting the technology, thus retarding the rate at which firms enter the industry.
• D) Producers who adopt the technology will have short-run economic losses.

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Definitions:

Appeal To Force

A logical fallacy that uses the threat of force or intimidation to convince others to accept a conclusion.

Fallacy

A misleading or flawed argument that makes an error in reasoning.

Threat

An indication or warning of probable trouble, danger, or disaster.

Appeal To Force

A logical fallacy where one tries to win an argument by using threats or force instead of persuasion.