Asked by Christopher Thomas on Jul 19, 2024
Verified
For a perfectly competitive industry, an improvement in technology will cause
A) a movement up the short-run industry supply curve.
B) a movement down the short-run industry supply curve.
C) the industry short-run supply curve to shift to the right.
D) the industry short-run supply curve to shift to the left.
Industry Supply Curve
A graphical representation showing the relationship between the price of a good and the total output supplied by the industry.
Technology Improvement
Enhancements or advancements in technological capabilities, leading to more efficient processes or products.
- Attain knowledge about how technology and economies of scale affect cost and the modification of industry practices.
- Ascertain the factors responsible for modifications in the supply curves within industries.
Verified Answer
EN
Ealan NisanovJul 19, 2024
Final Answer :
C
Explanation :
An improvement in technology typically makes production more efficient, lowering the costs of production for firms. This results in an increase in supply, which is represented by a rightward shift of the industry's short-run supply curve.
Learning Objectives
- Attain knowledge about how technology and economies of scale affect cost and the modification of industry practices.
- Ascertain the factors responsible for modifications in the supply curves within industries.
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