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g What will be the effect on short-run price, quantity, and profit if a technological development reduces marginal costs in a competitive market

User Nishu
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Answer:

If a technological development reduces marginal costs in a competitive market, the aggregate supply curve of the market, which is the sum of the individual firm's supply curves, will shift to the right, because technological developments reduce production costs, which allows firms to increase output.

Prices will also fall to the point that firms will make exactly zero economic profit, something that will benefit consumers, and that is one of the key characteristics of perfectly competitive markets.

User Mike Webb
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