For a perfectly competitive industry, an improvement in technology will cause
A) a movement up the short-run industry supply curve.
B) a movement down the short-run industry supply curve.
C) the industry short-run supply curve to shift to the right.
D) the industry short-run supply curve to shift to the left.

Question

Quizplus · Accepted Answer

An improvement in technology typically makes production more efficient, lowering the costs of production for firms. This results in an increase in supply, which is represented by a rightward shift of the industry's short-run supply curve.

For a Perfectly Competitive Industry, an Improvement in Technology Will