Technological improvements cause
A)New firms to enter but existing firms to continue producing their old output levels.
B)Some firms to exit but the remaining firms to produce more output.
C)Existing firms to produce more output.
D)Existing firms to continue producing their old output levels but to lower the price of the products.

Question

Quizplus · Accepted Answer

Technological improvements allow existing firms to produce more output with the same amount of inputs or resources. This is known as an increase in productivity. As a result, existing firms are able to produce more output, creating cost advantage against their competitors.

Technological Improvements Cause