Which of the Following Would Result from a Technological Advance

question 89

Multiple Choice

Which of the following would result from a technological advance in a perfectly competitive market?

• A)The market demand curve will shift rightward.
• B)Consumers will benefit as the price declines.
• C)Producers will benefit as long-run profits rise.
• D)The market supply curve will shift leftward.
• E)In a constant-cost industry,the price will not change in the long run.

---

Definitions:

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Manufacturing Overhead Costs

Indirect costs related to manufacturing that cannot be directly attributed to specific units produced, such as maintenance and utility expenses.

Finished Goods Inventory

Finished goods inventory consists of items that have completed the manufacturing process and are ready to be sold to customers, representing a final stage in product inventory.

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit of inventory, based on the cost of goods available for sale and the number of units available.