Microeconomics- Producer theory

UK Best Essay Writing

Microeconomics- Producer theory

1. Microeconomics- Producer theory

(Answer both parts together in an essay format)

Part A) Describe what happens in the short run and in the long run to a perfectly competitive firm when new lower cost technologies are introduced. (Assume that these lower technology costs are equivalent to a reduction in fixed costs).

Part B) “In the long run the degree of competition in a market does not matter because technological progress reduces production costs so that consumers always benefit”. To what extent do you agree/disagree?

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