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.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing companies to adjust all inputs.

Least-cost Production

A production method where the combination of resources used minimizes costs for a given output level, achieving productive efficiency.

Per Unit Costs

The average cost of production or delivery per individual unit, calculated by dividing total costs by the number of units produced or delivered.

Output Level

is the quantity of goods or services produced within a given period by a firm or economy.