In economics, the best definition of technology is Further, positive technological change is defined as
the process a firm uses to turn inputs into outputs.being able to produce more output using the same inputs.being able to produce the same output using fewer inputs.
a firm must use more inputs to produce the same outputa firm must use more inputs to produce the same output.
What is the difference between the short run and the long run?Is the amount of time that separates the short run from the long run the same for every firm?
In the short run, at least one of a firm”s inputs is fixed, while in the long run, a firm is able to vary all its inputs and adopt new technology.No
a nonmonetary opportunity cost.An explicit cost is a cost that involves spending money, while an implicit cost is a nonmonetary cost.
illustrating the relationship between inputs and the maximum amounts of output that the firm can produce with these inputs.the amount of capital.
In the initial stages of production, specialization and division of labor lead to an increasing marginal product for workers,
allowing workers to concentrate on a few tasks so that they become more skilled at doing them quickly and efficiently.
What is the difference between the average cost of production (ATC) and marginal cost of production (MC)?
Economies of scale occurFor which of the following reason(s) may firms experience economies of scale?
when a firm”s long-run average costs decrease with output.A.Firm”s production may increase with a smaller proportional increase in at least one input.B.Large firms may be able to purchase inputs at lower costs than smaller competitors; they can also borrow money at a lower interest rate.C.Both managers and workers may become more specialized and hence more productive as output expands.
Diseconomies of scale isWhat is the main reason that firms eventually encounter diseconomies of scale as they keep increasing the size of their store or factory?
when a firm”s long-run average costs increase with output.Firms have difficulty coordinating production.