When a Firm Adopts New Technology,generally Its

question 178

Multiple Choice

When a firm adopts new technology,generally its

• A) cost curves shift upward.
• B) cost curves shift downward.
• C) cost curves are unaffected.
• D) supply curve shifts leftward.
• E) production permanently decreases.

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Definitions:

Breach of Warranty

Failure to fulfill the terms of a promise or guarantee made about the quality or duration of a product or service.

Installation

The process of setting up or fitting equipment, software, or hardware for it to be ready for use.

Conditional Sales Contracts

Agreements that transfer the possession of goods from the seller to the buyer, but not legal ownership until certain conditions, typically final payment, are met.

Sale-on-approval

A transaction in which goods are delivered to a buyer with the understanding that the sale becomes final only if the buyer approves or is satisfied with the products.