12. Short-Run Outcomes

• 1.
• Short Run
• 2.
• Long Run

STEP:1 of 2

Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books.

Suppose Hi-Tech's patent prevents other firms from using the new technology.

Which of the following statements are true about what happens in the short run?Check all that apply.

Hi-Tech's profits remain the same.

Hi-Tech's marginal-cost curve shifts downward.

Hi-Tech's average-total-cost curve shifts downward.

The price of books decreases.