#13

Consider the short run prots and losses of rms after the technological change. Unied 518mm! Producer World 0] Market C] The blue box is not short run prots of a U.S. rm after introduction of the new technology, the increase in short run output, and the drop in price from P1 to P2 because the rm has not adjusted output to the drop in price. C] The blue box is the short run prots of a US. rm after introduction of the new technology, the increase in short run output, and the drop in price from P1 to P2. C] The red box is the short run prots of a rm in the Rest of the World after introduction of the new technology, the rm adjusting short run output, and the drop in price from P1 to P2. C] The red box is not the short run prots of a rm in the Rest of the World after introduction of the new technologyand the drop in price from P1 to P2 because the rm would shut down in the short run. C] None of the answers are correct. Consider the long run changes in the market. United States Oil Producer S/unit P P P2 P. World Oil Market S. 91 92 P Rest of World Oil Producer. MC3 MC, S/unit P 3 P P P2 PA DA Q 97 OutputO In the long run, additional increases in the output of existing firms in the U.S. will shift the short run supply curve from S2 to S4 and cause the price of oil to fall from P2 to P4. O In the long run, additional increases in the output of existing firms in the Rest of the World will shift the short run supply curve from S2 to S4 and cause the price of oil to fall from P2 to P4. O In the long run, the entry of new firms in the U.S. will shift the short run supply curve from S2 to S4 and cause the price of oil to fall from P2 to P4. O In the long run, the entry of new firms in the Rest of the World will shift the short run supply curve from S2 to S4 and cause the price of oil to fall from P2 to P4. O In the long run, the entry of new firms in the U.S. and the exit of firm in the Rest of the World will shift the short run supply curve from S2 to S4 and cause the price of oil to fall from P2 to P4. O Firms will stop entering when price falls to the min ATC of U.S. firms after the technological change. O Firms will stop entering when price falls to the min ATC of firms in the Rest of the World after the technological change.Consider the short and long run losers and beneficiaries of the technological change. O In the short run, only consumers in the U.S. benefit from the new technology. O In the short run, only consumers in the Rest of the World benefit from the new technology. O In the short run, consumers everywhere benefit from the new technology. O In the short run, only producers in the U.S. benefit from the new technology. O In the short run, only producers in the Rest of the World benefit from the new technology. O In the short run, producers everywhere benefit from the new technology. O In the long run, only U.S. consumers benefit from the new technology. In the long run, only consumers in the Rest of the World benefit from the new technology. In the long run, consumers everywhere benefit from the new technology. O In the long run, only U.S. firms benefit from the new technology. O In the long run, only firms in the Rest of the World benefit from the new technology. O In the long run, only U.S. firms don't benefit from the new technology and foreign firms are left worse off because they are forced out of business. If you are a consumer in a foreign country, technolgical improvements made by U.S. firms that are implemented only in the U.S. make people all over the world better off.Suppose the introduction of new technology and the discovery of new oil deposits in the U.S. causes a large decrease in the income of consumers in the Arab world and an equally large increase in the United States. The graphs show the world automobile market divided into two markets-the U.S. automobile market and the Arab auto market. Suppose that automobiles are normal goods in the US. and the Arab world. U S. Mutable Mmufuchrar [:] In the U.S. the change in income shts the demand curve from D1 to D3 because the income elasticity is negative. C] In the U.S. the change in income shts the demand curve from 01 to D3 because the income elasticity is positive. [:] In the Arab makert the change in income shts the demand curve from D1 to D4 because the income elasticity is negative. C] In the Arab makert the change in income shts the demand curve from D1 to D4 because the income elasticity is positive. [:] In the U.S. the change in income shts the demand curve from 01 to D2 because the income elasticity is negative. C] In the U.S. the change in income shts the demand curve from D1 to D2 because the income elasticity is positive. C] In the Arab makert the change in income shts the demand curve from D1 to D5 because the income elasticity is negative. C] In the Arab makert the change in income shts the demand curve from D1 to D5 because the income elasticity is positive. [:] The change in income doesn't affect demand for automobiles