In a perfectly competitive market,the first firm to adopt a new cost-saving technological advance will

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all firms have access to the same technology and information, meaning that any cost-saving technological advance will eventually be adopted by all firms. However, the first firm to adopt the technology will have a temporary advantage in the market and will earn an economic profit until other firms catch up. Therefore, the correct answer is C.

In a Perfectly Competitive Market,the First Firm to Adopt a New