In the Figure Given Below, Panel a Represents Preexisting Firms

question 13

Multiple Choice

In the figure given below, Panel A represents preexisting firms which are in long run equilibrium at price P₀ and output q₀.MC and AC represents the marginal cost and the average cost of the preexisting firms.Panel B represents a market where every seller has the smallest ability to affect prices.The market is in equilibrium at price P₀ and output Q shown by the intersection of the long-run supply curve (LRS) and market demand (D) .



-Refer to Figure .Which of the following can be concluded about the innovative firm which reduces its marginal and average cost by using the new technology?

• A)The equilibrium output produced by this firm will increase.
• B)The equilibrium output produced by this firm will decrease.
• C)This firm will offer its produce at a price below P0.
• D)This firm will offer its produce at a price above P0.

---

Definitions:

United States Census Bureau

A principal agency of the U.S. Federal Statistical System, responsible for producing data about the American people and economy, primarily known for conducting the decennial census.

Twenty-First Century

The current century, spanning from the year 2001 to 2100, characterized by rapid technological innovation and global interconnectedness.

Prison Population

The total number of individuals incarcerated in a country's prison system at any given time.