Technology Reduces the Average Cost of Production,so in the Long

question 124

Multiple Choice

Technology reduces the average cost of production,so in the long run
i.perfectly competitive firms produce at a lower average cost.
ii.the market price of the good falls.
iii.firms with older plants either exit the market or adopt the new technology.

• A) i only.
• B) i and ii.
• C) iii only.
• D) i and iii.
• E) i, ii, and iii.