A perfectly competitive industry is in long-run equilibrium. Some ...

[bobypop]

A perfectly competitive industry is in long-run equilibrium. Some firms in the industry adopt new technology that reduces the average total cost of producing the good.
 
  In the long run, the price is ________, firms with the new technology make ________ economic profit, and firms with the old technology ________. A) lower; zero; exit the industry
  B) constant; a positive; make zero economic profit
  C) lower; zero; switch to the new technology or exit the industry
  D) constant; zero; exit the industry

Question 2

The price effect refers to how changes in
 
  A) price affect real income.
  B) price affect the quantity of a good consumed.
  C) income affect prices.
  D) preference affect prices.

[Chocorrol77]

Answer to Question 1

C

Answer to Question 2

B

[bobypop]

Great answer, keep it coming

[alvinum]

Thanks for the timely response, appreciate it