Consider a Perfectly Competitive Industry in a Long-Run Equilibrium

question 87

Multiple Choice

Consider a perfectly competitive industry in a long-run equilibrium. If a single firm in that industry discovers a significant cost-saving production technology, then:

• A)all firms in the market will earn an economic profit in the short run.
• B)the rest of the industry will quickly adopt the new technology.
• C)the firm will earn an economic profit in the long run.
• D)all the firms in the market will earn an economic profit in the long run.