Technological Change Spreads Through a Perfectly Competitive Market

Technological change spreads through a perfectly competitive market.Choose the statement that is incorrect.

A) The market price falls and the equilibrium quantity increases.
B) The technological change brings permanent gains for consumers and producers.
C) Firms that do not change to the new technology will incur an economic loss and eventually go out of business.
D) Firms that are quick to adopt to the new technology will make economic profits initially, but in the long run they will make zero economic profit.
E) Average cost will fall for firms who adopt the new technology.

Correct Answer:

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