In a perfectly competitive market,long-run average cost [LAC] and the long-run marginal cost [LMC] are equal to $8 for a typical firm.However,one of the firms discovers a technological innovation lowering its average cost [AC] and marginal cost [MC] to $7.How will this affect the equilibrium price? If all firms can take advantage of the innovation,what is the impact on the market price and industry profits?

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The Answer of In a perfectly competitive market,long-run average cost [LAC] and the long-run marginal cost [LMC] are equal to $8 for a typical firm.However,one of the firms discovers a technological innovation lowering its average cost [AC] and marginal cost [MC] to $7.How will this affect the equilibrium price? If all firms can take advantage of the innovation,what is the impact on the market price and industry profits?

In a Perfectly Competitive Market,long-Run Average Cost [LAC] and the Long-Run