Final answer:
A technological advance that improves productivity in a purely competitive industry will result in a shift down of the individual firm's MC curve, causing the market supply curve to shift to the right.
Step-by-step explanation:
A technological advance that improves productivity in a purely competitive industry will result in a shift down of the individual firm's MC (Marginal Cost) curve, causing the market supply curve to shift to the right.
Technological improvements lead to a reduction in the costs of production, allowing firms to produce goods at a lower cost. This results in a decrease in the firm's Marginal Cost (MC). As a result, the market supply curve shifts to the right, as more firms can now supply goods at a lower cost.
For example, if a technological advancement enables farmers to produce crops more efficiently, it reduces their costs. This decrease in costs leads to a downward shift in the MC curve for each farmer, and collectively, the market supply curve shifts to the right as more farmers can now supply crops.