Assume that there is an improvement in the technology used by firms in
Assume that there is an improvement in the technology used by firms in a perfectly competitive industry that is initially in long-run equilibrium. In the short run this would cause:
A) an increase in the firm’s economic profit.
B) a decrease in the firm’s economic profit.
C) no change in the firm’s economic profit.
D) cannot be determined with the information given.
ANSWER
A
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