Initially, a perfectly competitive market that has 1,000 firms is in long-run
equilibrium. Then 100 firms in the industry adopt a new technology that reduces the
average cost of producing the good. In the short run, the price
the new technology make
technology
firms with
economic profit, and firms with the old
a) falls; break even; incur an economic loss
b) remains the same; zero; incur an economic loss
c) remains the same; positive; break even
d) remains the same; positive; incur an economic loss
e) falls; positive; incur an economic loss