Initially,a Perfectly Competitive Market That Has 1,000 Firms Is in Long-Run

Initially,a perfectly competitive market that has 1,000 firms is in long-run equilibrium.Then 100 firms in the industry adopt a new technology that reduces the average cost of producing the good.In the short run,the price ________,firms with the new technology make ________ economic profit,and firms with the old technology ________.

A) remains the same;zero;incur an economic loss
B) remains the same;positive;break even
C) falls;positive;incur an economic loss
D) remains the same;positive;incur an economic loss
E) falls;break even;incur an economic loss

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free