If a perfectly competitive firm adopts a new technology, greater economic profit is possible in the _______, but a competitive return will be earned in the _______ as the market supply will______

Question

Quizplus · Accepted Answer

In the short run, a firm that adopts new technology can achieve greater economic profit due to increased efficiency and possibly lower costs. However, in the long run, as other firms adopt the same or similar technologies, the market supply will increase, leading to a decrease in the price until only a competitive return is earned.

If a Perfectly Competitive Firm Adopts a New Technology, Greater