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A New Production Technique That Reduces Costs for a Price-Taking

Question 112

Multiple Choice

A new production technique that reduces costs for a price-taking firm in a competitive market will result in


A) widespread industry adoption and a lower price to consumers.
B) industry consolidation.
C) sustained positive economic profit for the first firms that adopt the technique.
D) a rightward shift in the demand curve.
E) entry by new firms.

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