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A Perfectly Competitive Industry Is in Long-Run Equilibrium

Question 257

Multiple Choice

A perfectly competitive industry is in long-run equilibrium. Some firms in the industry adopt new technology that reduces the average total cost of producing the good. In the long run, the price is ________, firms with the new technology make ________ economic profit, and firms with the old technology ________.


A) lower; zero; exit the industry
B) constant; a positive; make zero economic profit
C) lower; zero; switch to the new technology or exit the industry
D) constant; zero; exit the industry

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