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Asked by Madison Zurweller on Jul 15, 2024

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When LCD televisions first came on the market, they sold for at least $1,000, and some for much more. Now many units can be purchased for under $400. These facts imply that

A) the LCD television industry was once competitive but is now monopolistic.
B) fewer firms produce LCD televisions than was the case five or ten years ago.
C) the demand curve for LCD televisions has shifted leftward.
D) the LCD television industry is a decreasing-cost industry.

Decreasing-cost Industry

An industry in which the average cost of production decreases as the total volume of production in the industry increases.

LCD Televisions

A type of television using Liquid Crystal Display technology to produce images, known for its thin profile and energy efficiency.

Market Price

The ongoing price level for buying or selling goods or services in a market setting.

  • Acknowledge the impact of technological advancements and scale economies on determining the costs within industries and the pricing in markets.
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JH
Jeremy HwangJul 15, 2024
Final Answer :
D
Explanation :
The decrease in prices over time suggests that as the industry expanded, the costs of production decreased, which is characteristic of a decreasing-cost industry. This could be due to improvements in technology, economies of scale, or other factors that reduce the cost per unit as the industry grows.

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