The arrival of inexpensive information technology, such as personal computers and inexpensive telecommunications:
A)discouraged de-integration.
B)increased the optimal size of firms.
C)shifted the long-run average cost (LRAC) curve of firms downward.
D)shifted the marginal cost of firms upward.

Question

Quizplus · Accepted Answer

The arrival of inexpensive information technology, such as personal computers and inexpensive telecommunications, has reduced the cost of communication and data processing. This has allowed firms to operate efficiently, and as a result, the long-run average cost (LRAC) curve of firms has shifted downward.

The Arrival of Inexpensive Information Technology, Such as Personal Computers