In a perfectly competitive industry, the long-run equilibrium price is $12. If a technological innovation lowers production costs, the long-run equilibrium price will:

Question

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In a perfectly competitive market, technological innovations that lower production costs will lead to a decrease in the long-run equilibrium price as firms can supply the same quantity at a lower cost, passing the savings onto consumers.

In a Perfectly Competitive Industry, the Long-Run Equilibrium Price Is