Technological Change Allows Perfectly Competitive Firms to ________ and Leads

question 72

Multiple Choice

Technological change allows perfectly competitive firms to ________ and leads to ________.

• A) lower their costs; lower prices for consumers
• B) raise their prices; higher prices for consumers
• C) lower their costs; higher prices so the firms can earn economic profits in the long run
• D) raise their costs; higher prices and maximum profits in the long run
• E) lower their costs; deadweight loss

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Definitions:

Response To Selection

The process by which certain traits become more or less common in a population due to their impact on the survival and reproduction of their bearers.

Selection Differential

The difference between the average trait of the selected individuals for breeding and the average trait of the general population, indicating the potential for evolutionary change.

Drought

An extended period of below-average precipitation, resulting in prolonged shortages in the water supply, whether atmospheric, surface water, or ground water.

Bt Resistance

The acquired ability of pests to tolerate the Bacillus thuringiensis toxin, often through evolutionary adaptation, rendering Bt crops less effective.