Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. Suppose Hi-Tech's patent prevents other firms from using the new technology. Which of the following statements are true about what happens in the short run? Check all that apply. Hi-Tech's profits increase. The price of books decreases. Hi-Tech's marginal-cost curve shifts downward. Hi-Tech's average-total-cost curve remains the same.

Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. Suppose Hi-Tech's patent prevents other firms from using the new technology. Which of the following statements are true about what happens in the short run? Check all that apply. Hi-Tech's profits increase. The price of books decreases. Hi-Tech's marginal-cost curve shifts downward. Hi-Tech's average-total-cost curve remains the same.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Short-Run Outcomes

Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that
sharply reduces the cost of printing books.
Suppose Hi-Tech's patent prevents other firms from using the new technology.
Which of the following statements are true about what happens in the short run? Check all that apply.
Hi-Tech's profits increase.
The price of books decreases.
Hi-Tech's marginal-cost curve shifts downward.
Hi-Tech's average-total-cost curve remains the same.

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