Several Producers in Industry a Developed an Improved Technology That

Multiple Choice

Several producers in industry A developed an improved technology that reduces the quantity of resources used to produce a given output. Which of the following would be expected?

A) The per-unit costs of production of the firms adopting the technology would increase.
B) In the short run, economic profits would be earned by the earliest firms adopting the technology.
C) Product price would immediately fall to the minimum average total cost of the firms quickly adopting the technology, thus retarding the rate at which firms enter the industry.
D) Producers who adopt the technology will have short-run economic losses.