Technological improvements cause

Question

Quizplus · Accepted Answer

Technological improvements lead to a decrease in the average total cost (ATC) of production, causing the ATC curve to shift down. This is because technology makes it possible to produce goods and services in a more efficient manner, reducing the cost per unit of production. This results in a decrease in the overall cost of production, including fixed and variable costs, which is reflected in the ATC curve. As a result, firms are able to produce more output at a lower cost, which can lead to a decrease in prices and an increase in consumer surplus.

Technological Improvements Cause