How does the introduction of advanced technology in dairy production affect competition among dairy producers in a perfectly competitive market, particularly in the context of international trade?

The introduction of advanced technology in dairy production can significantly impact competition among dairy producers in a perfectly competitive market. When some producers adopt new technologies, they can produce milk more efficiently, which often leads to lower costs and higher output. This can give them a competitive edge over others who may not have access to or cannot afford the same technology, making it difficult for less efficient producers to compete. For example, a dairy farm that uses automated milking equipment can produce more milk in less time than a farm that relies on manual milking, allowing the automated farm to sell milk at a lower price. In the context of international trade, countries with advanced dairy technology may export their surplus milk more effectively, potentially driving down prices globally and challenging local producers in other countries.