Price of BoMC1MC₂Quantity of BooksNow suppose the patent expires and other firms are free to use the technology.Which of the following statements are true about what happens in the long run? Check all that apply.All firms' average-total-cost curves decline to ATC2.All firms make positive profits.O The market price falls to P2. Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process thatsharply reduces the cost of printing books.The following graph shows Hi-Tech's initial marginal-cost curve (MC1) and average-total-cost curve (ATC1 ) before the new technology, and itsmarginal-cost curve (MC2) and average-total-cost curve (ATC2) after the new technology.Price of BooksATC1*MC₁MC 2Quantity of BooksATC2?

All firms earn zero profit When all firms adopt new technology their average total cost becomes ATC2…

Price of Bo MC₁ MC₂ Quantity of Books Now suppose the patent expires and other firms are free to use the technology. Which of the following statements are true about what happens in the long run? Check all that apply. All firms' average-total-cost curves decline to ATC₂. All firms make positive profits. The market price falls to P2.

Price of Bo MC₁ MC₂ Quantity of Books Now suppose the patent expires and other firms are free to use the technology. Which of the following statements are true about what happens in the long run? Check all that apply. All firms' average-total-cost curves decline to ATC₂. All firms make positive profits. The market price falls to P2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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