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.

---

Definitions:

Reduced-Fat Cookies

Cookies formulated with lower amounts of fat compared to their traditional counterparts.

Grams of Fat

A measurement of fat content often found on nutritional labels, indicating the mass of fat present in a food item.

Confidence Interval

A range of numerical outcomes, derived from statistical analysis of samples, predicted to contain the value of a mystery population parameter.

Gas Price

The cost per unit volume of gasoline, determined by various factors including crude oil prices, taxes, and demand.