At the latest industry conference your boss attended, she learned about a coming technology that will allow every unit of the good to be produced at a flat cost of $7. Your boss shared with you that the current cost at your company (and many similar companies) is C = 2,000 + 8Q + 0.5Q2, where Q is the quantity of the good that the firm produces. She is asking for an impact analysis: how will the industry change as a result of this new technology? After thinking through the economics of competitive industries, you report back that ...

A) Firms will not adopt this new technology, and we should expect the long-run price to be less than $7.

B) Firms will not adopt this new technology, and we should expect the long-run price to be above $7.

C) Firms will adopt this new technology based on the information we have about costs, but we cannot say anything else without knowing more details about the demand conditions.

D) Firms will adopt this new technology, and we should expect the long-run price to be $7.