Business, 12.11.2019 23:31 pinkycupcakes3oxbqhx

Recall the model with firm performance differences in a single integrated market discussed in the chapter. now assume that a new technology becomes available. any firm can adopt the new technology, but its use requires an additional fixed-cost investment. the benefit of the new technology is that it reduces a firm's marginal cost of production by a given amount. could it be profit maximizing for some firms to adopt the new technology but not profit maximizing for other firms to adopt that same technology? which firms would choose to adopt the new technology? how would they be different from the firms that choose not to adopt it? assuming that if a firm invests in the technology, it will face a fixed cost t, but face a marginal cost ct which is lower than its marginal cost c without the technology,

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Recall the model with firm performance differences in a single integrated market discussed in the ch...

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