Technological change brings a ________ to firms that adopt the new technology.
A) permanent economic profit
B) temporary economic profit
C) permanent economic loss
D) temporary economic loss
E) temporary normal profit

Question

Quizplus · Accepted Answer

Technological change can bring a temporary economic profit to firms that adopt the new technology. However, as other firms also adopt the technology, the profit will decrease and eventually disappear as the market becomes more competitive. Therefore, the economic profit from adopting new technology is usually temporary.

Technological Change Brings a ________ to Firms That Adopt the New