/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 1 What is the difference between t... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 11: Problem 1

What is the difference between technology and technological change?

Short Answer

Expert verified
Technology refers to the collection of methods, techniques, and devices at our disposal, while technological change is the process of developing new technologies and/or improving existing ones.

Step by step solution

01

Define Technology

Define the concept of 'technology'. Technology refers to the collection of techniques, skills, methods, and processes used in the production of goods or services, or in the accomplishment of objectives. It is a broad concept that encompasses various aspects such as procedures, equipment, knowledge and so forth.
02

Define Technological Change

Define the concept of 'technological change'. Technological change is the development of new technologies and/or the improvement of existing ones. It can be manifested in different ways: the creation of new products, improvement of production processes, or development of new ways to provide services.
03

Compare and Contrast

Compare and contrast the two concepts. From the definitions, it is clear that while technology refers to tools and techniques currently in use, technological change is about the process of improving these tools and techniques or coming up with entirely new ones.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Technological Change
Technological change is a crucial concept to understand in economics. It refers to the continuous process of innovation and improvement in technology. This involves developing entirely new tools and methods, or enhancing existing ones.

Think about how smartphones have evolved over the years. The phones themselves are technology, but each new version represents technological change.
  • Improving efficiency: Technological change often leads to more efficient production methods, which can reduce costs and increase productivity.
  • Introducing new products: It encourages the development of new products that can meet consumer demands or create new markets entirely.
  • Transforming industries: Technological change can lead to significant shifts within industries, altering how businesses operate and compete.
Understanding technological change helps us see how economies grow and transform over time.
Production Processes
Production processes are the methods and techniques used to transform raw materials into finished goods or services. They form the backbone of any manufacturing or service industry.

Think of a car assembly line as an example of a production process. Each step in the line is designed to efficiently put together car parts into a completed vehicle.
  • Streamlining operations: Optimizing production processes helps in reducing waste and improving efficiency.
  • Reducing costs: By making production more efficient, businesses can lower their costs and increase their profit margins.
  • Facility layout and design: Good production processes often involve the careful design of facilities to ensure smooth and rapid output of goods.
Production processes are continually refined with technological change, which boosts their effectiveness even more.
Innovation in Services
Innovation in services refers to the introduction of new or improved services to meet consumers' needs better. It's not just about creating new services but also enhancing existing ones.

For instance, think about the way streaming services have transformed how we consume music and movies, eliminating the need for physical media.
  • Adapting to consumer needs: Service innovation helps businesses tailor their offerings to better suit consumer preferences.
  • Enhancing service delivery: Innovations often focus on making service delivery faster, more convenient, and more reliable.
  • Leveraging technology: Technology is key in driving service innovation, enabling things like online banking and telemedicine.
Innovation in services ensures that businesses remain competitive and relevant in a fast-changing market.

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What are implicit costs? How are they different from explicit costs?

Explain why the marginal cost curve intersects the average total cost curve at the level of output where average total cost is at a minimum.

What are economies of scale? What are four reasons that firms may experience economies of scale?

We saw in the chapter opener that some colleges and private companies have launched online courses that anyone with an Internet connection can take. The most successful of these massive open online courses (MOOCs) have attracted tens of thousands of students. Suppose that your college offers a MOOC and spends a total of \(\$ 200,000\) on one-time costs to have instructors prepare the course material and buy additional server capacity. The college administration estimates that the variable cost of offering the course will be \(\$ 20\) per student per course. This variable cost is the same, regardless of how many students enroll in the course. a. Use this information to fill in the missing values in the following table: $$ \begin{array}{c|c|c|c|c} \hline \text { Number of } & & \\ \begin{array}{c} \text { Students } \\ \text { Taking the } \\ \text { Course } \end{array} & \begin{array}{c} \text { Average } \\ \text { Total Cost } \end{array} & \begin{array}{c} \text { Average } \\ \text { Variable } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Average } \\ \text { Fixed Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} \\ \hline 1,000 & & & & \\ \hline 10,000 & & & & \\ \hline 20,000 & & & & \\ \hline \end{array} $$ b. Use your answer to part (a) to draw a cost curve graph to illustrate your college's costs of offering this course. Your graph should measure cost on the vertical axis and the quantity of students taking the course on the horizontal axis. Be sure your graph contains the following curves: average total cost, average variable cost, average fixed cost, and marginal cost.

Where does the marginal cost curve intersect the average variable cost curve and the average total cost curve?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.