There is a technological advance in a perfectly market. Which of the following statements is NOT true?
A) As more firms begin to use the new technology, the market supply increases and the price falls.
B) Technological change brings permanent gains to producers and temporary gains to consumers.
C) In the new long-run equilibrium, all the old-technology firms have exited.
D) In the long-run equilibrium, competition eliminates any short-run economic profit.
B
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Which of the following istrueconcerning the indifference map?
a. Each consumer has a map of indifference curves. b. Consumers always prefer curves farther from the origin. c. Each indifference curve in the map represents a different level of total utility. d. All of the above are true. e. None of the above is true.
Which of these is a characteristic of monopolistic competition? a. There are barriers to the entry of new firms
b. There are many firms with no control over price. c. The product of each firm is a close substitute of the products produced by other firms. d. The product of each firm is unique and entirely different from the products produced by other firms.
Suppose you own a firm that produces widgets and is a monopoly. The market demand is given by the equation P = 100 - 2Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week. The firm's marginal costs are given by the equation MC = 16Q. When the monopolist maximizes profits the price elasticity of demand for widgets is
A. 9. B. 36. C. 0.02. D. 0.5.
How can freedom of the press promote economic growth?
A) A free press can be more easily swayed to report only one side of any issue. B) A free press reduces the likelihood that judges will protect private property rights. C) A free press can act as a watchdog for corruption, increasing chances for economic growth. D) A free press does not promote economic growth.