Which of the following are examples of a firm experiencing positive technological change? a. A firm is able to cut each worker's wage rate by 10 percent 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 healthy and 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 that by using its initial set of inputs, it can produce exactly as much as before.

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8 June, 16:16

Which of the following are examples of a firm experiencing positive technological change? a. A firm is able to cut each worker's wage rate by 10 percent 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 healthy and 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 that by using its initial set of inputs, it can produce exactly as much as before.

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Helena York · Answer 1

The correct answer is option b, c and d.

Explanation:

A positive technological change refers to the situation when a firm is able to produce same level of output using lesser inputs or is able to produce more output using same level of inputs.

If a training is increasing the productivity of workers then its positive technological change, because workers will be able to produce more.

Similarly, an exercise program makes workers healthier and more productive, so they will be able to produce more. This is a positive technological change.

When the firm is able to produce same output by employing lesser workers then it is an example of positive technological change.