The introduction of new technology and changes in organization are:
A)likely to shift the LRAC curve.
B)unlikely to help in the short-run.
C)likely to shift the SRAC upward.
D)unlikely to affect a firm's cost curves in the long-run.

Question

Quizplus · Accepted Answer

The introduction of new technology and changes in organization can lead to improvements in efficiency and productivity, which can shift the LRAC (long-run average cost) curve downward. This means that the firm can produce the same level of output with lower costs in the long run. Therefore, option A is the best choice. Options B, C, and D are incorrect because these changes can often provide short-run benefits, can sometimes shift the SRAC (short-run average cost) curve downward, and can affect a firm's cost curves in the long run, respectively.

The Introduction of New Technology and Changes in Organization Are