Final answer:
Using a GPS for precise plowing is the best way to improve fuel efficiency for Sandy's tractor. Technological improvements like high-efficiency gas turbines and advanced tire manufacturing can reduce long-run average costs for a firm. These innovations affect not only the individual business but also the broader industry competition.
Step-by-step explanation:
To improve efficiency for Sandy's tractor scenario, the best option would be to use a GPS to make precise passes without overlap. This method enhances efficiency by ensuring that no unnecessary fuel is consumed due to overlapping paths. Moreover, it reduces the total time spent on plowing, which directly translates to fuel savings. Changing fuel and air filters could also help to improve efficiency, though this is more of a maintenance task rather than an innovative efficiency strategy. Replacing bias tires with radial tires might improve traction but it does not directly affect fuel efficiency. Lastly, shifting to a lower gear and increasing throttle could indeed improve the pulling power, but it is not the most fuel-efficient approach for a tractor that will be running for approximately 50 hours on a field.
Improvements in technology and the implementation of high-efficiency solutions can significantly reduce the long-run average cost curve of a firm. As visible through examples like high-efficiency gas turbines and advancements in tire manufacturing, these innovations can lower operational costs and enhance productivity, which benefit the individual firm and can influence competitive dynamics within an industry. The old cost curve would be at a higher level compared to the new one that shifts downward due to technological improvements, demonstrating reduced costs at all levels of output.