Firms in a perfectly competitive industry are in long-run equilibrium. A new technology becomes available that lowers production costs. Choose the statement that is incorrect.

Question

Answer

As more firms begin to use the new technology, market supply increases.

Answer

Firms that use the old technology incur economic losses.

Answer

In the long run, the market equilibrium price is low, but each firm makes an economic profit.

Answer

The first firms to use the new technology make an economic profit.

Answer

Old technology firms exit the market.

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Firms in a perfectly competitive industry are in long-run equilibrium. A new tec...

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