Refer to Figure 23.5 for a perfectly competitive firm. If more efficient production techniques were developed in this market, which of the following changes would we expect to occur, ceteris paribus?
A) The ATC, MC, and market price would all decrease.
B) The ATC alone would decrease.
C) The ATC, MC, and market price would all increase.
D) The ATC alone would increase.

Question

Refer to Figure 23.5 for a perfectly competitive firm. If more efficient production techniques were developed in this market, which of the following changes would we expect to occur, ceteris paribus?
A) The ATC, MC, and market price would all decrease. 
B) The ATC alone would decrease. 
C) The ATC, MC, and market price would all increase. 
D) The ATC alone would increase.

Quizplus · Accepted Answer

The Answer of  Refer to Figure 23.5 for a perfectly competitive firm. If more efficient production techniques were developed in this market, which of the following changes would we expect to occur, ceteris paribus?
A) The ATC, MC, and market price would all decrease. 
B) The ATC alone would decrease. 
C) The ATC, MC, and market price would all increase. 
D) The ATC alone would increase.