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:

Unlimited Personal Liability

A legal obligation where individuals can be held fully responsible for the debts and obligations of a business, potentially affecting their personal assets.

Partnership Authority

The legal power granted to a partner to act on behalf of and bind the partnership in business transactions.

Unlimited Personal Liability

A legal condition in which an individual can be held entirely responsible for the debts or obligations of a business entity, without limit to the value of that individual's assets.

Partnership Agreement

A contract among business partners detailing the operational and financial arrangements of the partnership.