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:

Central

Located in the center or of main importance.

802.11ac

A wireless networking standard in the 802.11 family that provides high-throughput wireless local area networks (WLANs) on the 5 GHz band.

802.11n

A wireless networking standard that improves upon previous 802.11 standards by increasing speed, range, and reliability of wireless networks.

802.3ac

A standard amendment to IEEE 802.3 that specifies frame extensions for VLAN tagging in Ethernet networks.