Technological change allows perfectly competitive firms to ________ and leads to ________.
A) lower their costs; lower prices for consumers
B) raise their prices; higher prices for consumers
C) lower their costs; higher prices so the firms can earn economic profits in the long run
D) raise their costs; higher prices and maximum profits in the long run
E) lower their costs; deadweight loss

Question

Quizplus · Accepted Answer

Technological change allows firms to lower their costs, which in turn allows them to lower prices for consumers. This is because firms can become more efficient and productive through the use of technology, reducing their costs and allowing them to pass on the savings to consumers in the form of lower prices. This is a key benefit of technological change in a perfectly competitive market.

Technological Change Allows Perfectly Competitive Firms to ________ and Leads