Chapter 11, Problem 11.1.1RQ

To determine

Technology and technological change.

Explanation of Solution

Technology refers to the processes a firm uses to turn inputs into outputs of goods and services. On the other hand, technological change is the change in the ability of a firm to produce a given level of output with a given quantity of inputs. An example of technology involves how well mangers arrange facilities to allow cooks to quickly cook the pizza, whereas an example of a technological change involves a firm’s managers increasing production of sales by creating a training program for cooks or installing faster cooking equipment.

Economics Concept Introduction

Concept introduction:

Technology: Technology refers to the processes a firm uses to turn inputs into outputs of goods and services.

Technological change: Technological change is the change in the ability of a firm to produce a given level of output with a given quantity of inputs.