Question

An industry experiences a technological advance that improves productivity. This change will result in a(n):

Answer 1

Answer:

decrease in marginal cost for firms in the industry and an increase in the industry supply curve

Explanation:

Supply is the ability of suppliers to produce goods to meet demand for that good at a particular period in time.

There will be an increase in demand when procedures for production are more efficient and when cost reduces.

In this case where there is a technological advance that improves productivity, the suppliers will be able to produce more goods at less cost.

So marginal cost will decrease because of the improved technology and supply will increase because of more efficient process of production.