Technological Advance Improves Productivity in a Purely Competitive Industry

question 164

Multiple Choice

Technological advance improves productivity in a purely competitive industry. This change will result in a shift

• A) down of the individual firm's MC curve, causing the market supply curve to shift to the left.
• B) down of the individual firm's MC curve, causing the market supply curve to shift to the right.
• C) up of the individual firm's MC curve, causing the market supply curve to shift to the left.
• D) up of the individual firm's MC curve, causing the market supply curve to shift to the right.

---

Definitions:

Labor Union

A labor union is an organized association of workers formed to protect and further their rights and interests.

Economic Theory

A set of principles and frameworks used to analyze, describe, and predict how an economy functions.

Cause-and-Effect Relationships

Connections between variables where a change in one variable (the cause) directly brings about a change in another variable (the effect).

Guidebook

A book with information or instructions to help users understand or accomplish something, often related to travel or specific subjects.