What will a new (superior) technology cause in the short run?
A) a decrease in MC, AVC, and ATC
B) an increase in AFC and a decrease in AVC
C) a decrease in MC and an increase in ATC
D) a decrease in both MC and AVC

Question

Quizplus · Accepted Answer

A new superior technology typically increases efficiency, leading to a decrease in marginal cost (MC), average variable cost (AVC), and average total cost (ATC) in the short run.

What Will a New (Superior) Technology Cause in the Short