A cost-saving innovation in a perfectly competitive industry will lead to:
A)entry by new firms.
B)economic profits for new firms.
C)economic profits for a few firms for a short time.
D)a leftward shift of the industry supply curve.

Question

Quizplus · Accepted Answer

The first firms to adopt a cost-saving innovation will profit for a short time, but eventually all firms will adopt the same technology.

A Cost-Saving Innovation in a Perfectly Competitive Industry Will Lead