MC TC AVC MR P Refer to the diegrams which pertain to a pure

MC TC AVC MR P Refer to the diegrams, which pertain to a purely competive firm producing output q and the industry in which t operates. The predicted long-fun adjustments in this industry might be offset by 0 a decline in product demend. O entry of new firms into the industry O an incredse Ih resource prices O a vechnological imigrovement in production methods O Type here to search

Solution

Solution-

Refer to the above diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. The predicted long-run adjustments in this industry might be offset by: a technological improvement in production methods.

The correct option is D. a technological improvement in production methods.

Reason-

Profit maximization in the long run is where MR = MC, technological changes increases production cost but increase in quality of product also hence, long-run adjustments in this industry might be offset by a technological improvement in production methods.