Question
Please explain how you came to your conclusion. Product X is manufactured under conditions of perfect competition by two groups of manufacturers: manufacturers from City
Please explain how you came to your conclusion.
Product X is manufactured under conditions of perfect competition by two groups of manufacturers: manufacturers from City A and manufacturers City B. Consumers in the industry are interested in spending a fixed amount to purchase the product. Manufacturers from City A Improved their production technology. Therefore:
A. The price of the product in the market has decreased and the expenses of consumers to purchase the product have decreased.
B. The quantity produced in City A will increase exactly the same size as the quantity produced in City B will decrease.
C. It is not possible to know about the revenue of the manufacturers in City A, but the revenue of the manufacturers in City B will decrease.
D. Manufacturers 'revenue in City A will increase, while manufacturers' revenue in City B will decrease by less than the increase In the revenue of the manufacturers in City A.
E. Answers A-D are incorrect
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