Using Two Graphs, Illustrate How a Positive Technological Change in the Market

question 193

Essay

Using two graphs, illustrate how a positive technological change in the market for notebook computers could eliminate short-run economic profit for a firm in that market.On the first graph, use a supply and demand graph to illustrate the positive technological change.On the second graph, use demand, ATC, MC, and MR curves to illustrate the elimination of economic profit resulting from the positive technological change.Explain what is taking place in each graph.

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Definitions:

Limbic System

An intricate network of nerves and pathways in the brain that regulates instinct and emotional state, governing fundamental emotions like fear, pleasure, and anger as well as primal impulses such as the need for food, sexual activity, domination, and nurturing offspring.

Forebrain

The anterior part of the brain, including the cerebral hemispheres, the thalamus, and the hypothalamus, responsible for a variety of functions including cognition, sensory processing, and motor responses.

Neocortex

The most evolved part of the cerebral cortex that involves higher functions such as sensory perception, generation of motor commands, spatial reasoning, conscious thought, and in humans, language.

Gray Matter

The darker part of the brain and spinal cord consisting mainly of neuronal cell bodies, dendrites, and unmyelinated axons, and is involved in processing information.