Technology reduces the average cost of production, so in the long run i. perfectly competitive firms produce at a lower average cost.
Ii. the market price of the good falls.
Iii. firms with older plants either exit the market or adopt the new technology.

Question

Quizplus · Accepted Answer

In the long run, technology reduces costs, leading to lower average costs for firms, a decrease in market prices, and older firms either exiting or adopting new technology to remain competitive.

Technology Reduces the Average Cost of Production, So in the Long