Technological Advance Improves Productivity in a Purely Competitive Industry

question 164

Multiple Choice

Technological advance improves productivity in a purely competitive industry. This change will result in a shift

• A) down of the individual firm's MC curve, causing the market supply curve to shift to the left.
• B) down of the individual firm's MC curve, causing the market supply curve to shift to the right.
• C) up of the individual firm's MC curve, causing the market supply curve to shift to the left.
• D) up of the individual firm's MC curve, causing the market supply curve to shift to the right.

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Definitions:

Linear Regression

A statistical technique employed to analyze the relationship between a dependent variable and one or more independent variables.

Regression Equation

A mathematical formula used to predict the value of a dependent variable based on one or more independent variables.

Predicted Value

The value estimated using a model or equation based on independent variables, in the context of regression analysis.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effects on the dependent variable.