Assume that there is an improvement in the technology used by firms in a perfectly competitive industry that is initially in long-run equilibrium. In the short run this would cause:
A) an increase in the firm's economic profit.
B) a decrease in the firm's economic profit.
C) no change in the firm's economic profit.
D) cannot be determined with the information given.
A
Economics
You might also like to view...
A ban on trade is known as a(n)
a. tariff b. embargo c. restraint d. fare
Economics
In long-run equilibrium, the perfectly competitive firm produces
a. where P = MC = AC. b. at the lowest point on its long-run average cost curve. c. where its long-run average cost curve is tangent to its horizontal demand curve. d. All of the above are correct.
Economics