In a perfectly competitive market,a technological advance brings ________ economic profit for producers and ________ lower prices for consumers.

Question

Quizplus · Accepted Answer

A technological advance in a perfectly competitive market will lead to temporary economic profit for producers due to increased efficiency and lower costs. However, in the long run, these benefits will be competed away as other producers adopt the same technology. This will ultimately lead to lower prices for consumers, which will be a permanent effect. Therefore, the correct answer is D - temporary economic profit for producers and permanent lower prices for consumers.

In a Perfectly Competitive Market,a Technological Advance Brings ________ Economic