12. Short-Run Outcomes

• 1. Short Run

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?Select all that apply.

a. Hi-Tech's profits increase.

b. Hi-Tech's average-total-cost curve remains the same.

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

d. The price of books decreases.