All else constant,an improvement in technology at each scale of operation would cause:
A)a movement up an industry's LRAC curve.
B)a movement down an industry's LRAC curve.
C)an upward shift of an industry's LRAC curve.
D)a downward shift of an industry's LRAC curve.

Question

Quizplus · Accepted Answer

An improvement in technology typically increases efficiency and reduces the costs of production at all scales of operation, leading to a downward shift of the Long-Run Average Cost (LRAC) curve. This reflects lower costs for producing any quantity of output.

All Else Constant,an Improvement in Technology at Each Scale of Operation