Which of the following are examples of a firm experiencing positive technology change?
a. A firm is able to cut each workers wage rate by 10% and still produce the same level of output
b. A training program makes a firm's workers more productive
c. An exercise program makes a firm's workers more productive
d. A firm cuts its workforce and is able to maintain its initial level of output
e. A firm rearranges the layout of its factory and finds by using its initial set of inputs, it can produce exactly as much as before

Respuesta :

Answer: b, c, d

Explanation:

Based on this definition, the examples of a firm experiencing positive technology change are:

b. A training program makes a firm’s workers more productive

c. An exercise program makes a firm’s workers more productive

d. A firm cuts its workforce and is able to maintain its initial level of output

These examples show that the firm is able to produce more or the same output with less or the same inputs, which means that its technology has improved.

The other examples are not related to positive technology change, because they do not involve a change in technology or they do not affect the output of the firm. For example:

a. A firm is able to cut each workers wage rate by 10% and still produce the same level of output This example shows that the firm is able to reduce its costs, but not its inputs or its technology. The output of the firm remains the same, so there is no positive technology change.

e. A firm rearranges the layout of its factory and finds by using its initial set of inputs, it can produce exactly as much as before This example shows that the firm is able to optimize its production process, but not its technology. The inputs and the output of the firm remain the same, so there is no positive technology change.