Problem
1. What will be the effect of a technological development that reduces marginal costs in a competitive market on short-run price, quantity, and profit?
2. Draw marginal cost, marginal revenue, and average total cost curves for a typical perfectly competitive firm in long-run equilibrium and indicate the profit-maximizing level of output and total profit for that firm.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.