In a market undergoing technological change,firms that
A) adopt the new technology temporarily incur an economic loss.
B) adopt the new technology temporarily make an economic profit.
C) do not adopt the new technology temporarily make an economic profit.
D) do not adopt the new technology increase their market share.
E) do not adopt the new technology continue to make a normal profit.

Question

Quizplus · Accepted Answer

Firms that adopt the new technology in a market undergoing technological change temporarily make an economic profit because they are able to produce goods or services more efficiently and effectively than their competitors who have not yet adopted the new technology. This gives them a competitive advantage and allows them to capture a larger share of the market.

In a Market Undergoing Technological Change,firms That