There Is a Technological Advance in a Perfectly Market

question 337

Multiple Choice

There is a technological advance in a perfectly market. Which of the following statements is NOT true?

• A) As more firms begin to use the new technology, the market supply increases and the price falls.
• B) Technological change brings permanent gains to producers and temporary gains to consumers.
• C) In the new long-run equilibrium, all the old-technology firms have exited.
• D) In the long-run equilibrium, competition eliminates any short-run economic profit.

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Definitions:

Alessandro Volta

An Italian physicist known for the invention of the voltaic pile, considered one of the first electrical batteries.

Pure Sulfuric Acid

Sulfuric acid with no impurities, highly corrosive and typically used industrially in concentrated form for chemical synthesis or processing.

Tap Water

Water supplied to a residential or commercial area through a system of pipes and taps, generally suitable for drinking and other domestic purposes.

Diode Trio

A set of three diodes used in an alternator to convert AC to DC current, essential for charging a vehicle's battery.