A new technology is introduced that reduces the cost of producing smartphones. How would you classify the resulting economic change in terms of market structure effects?

When a new technology reduces the cost of producing smartphones, it typically leads to increased competition in the market. This is because lower production costs allow more companies to enter the market, which can drive prices down and improve quality for consumers. As more firms compete, the market structure may shift closer to perfect competition, where many sellers exist, and no single company can control prices. For example, if a new company starts making smartphones at a lower cost due to this technology, it may attract customers away from established brands, forcing those brands to innovate or reduce their prices. Overall, this economic change encourages more choices for consumers and can lead to better products.