Cost-Saving Developments,e

Multiple Choice

Cost-saving developments,e.g. ,a new production procedure that saves two steps,introduced by a price-taking firm in a competitive market lead to

A) entry by new firms.
B) positive economic profit for new firms.
C) positive economic profit for a few firms for a short time.
D) higher consumer prices in the long run.
E) a leftward shift of the supply curve.