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If a Technological Advance Lowers a Firm's Production Costs, Why

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Essay

If a technological advance lowers a firm's production costs, why do prices typically fall? Shouldn't the firm maintain the same price and earn economic profit?


Definitions:

Adjustment

A modification or alteration made to change something, often to correct or improve it.

Opening Paragraph

refers to the first section of a piece of writing, which introduces the topic or main idea.

Routine Message

Regularly occurring communications that follow a standardized format or content, often used in organizational or professional contexts.

Indirect Approach

A communication method where the main point or message is not presented immediately but rather introduced through explanations or supporting details first.

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