Question

The technology change in the manufacturing process of New Ideas, Inc.'s products to make the process more efficient is the result of a competitor lowering its price. Therefore, it was a(n) ________.

Answer 1

In a perfectly competitive market, new technology that reduces costs of production will lead to a more efficient manufacturing process and a decrease in market price.

Step-by-step explanation:

In a perfectly competitive market, a substantial reduction in costs of production due to new technology will result in a shift in the supply curve. The supply curve will increase, as individual firms and the market as a whole can produce more efficiently. As a result, the price in the market will decrease, leading to a more efficient and competitive manufacturing process for companies like New Ideas, Inc.