The introduction of a new cost-saving production technology will shift the firm’s short-run average cost curve downward at each level of output.

The introduction of a new cost-saving production technology will shift the firm’s short-run average cost curve downward at each level of output.

True

When a firm introduces a new cost-saving technology, it is able to produce the same amount of output at lower costs. This reduces the per unit cost of production, thus shifting the short-run average cost curve downward.