Which of the following are examples of a firm experiencing a positive technological change?
a. A firm is able to reduce its inputs by 15 percent and still produce the same level of output.
b. A seminar attended by the firm's workers makes them more productive.
c. A firm adds 5 percent to its workforce and is able to maintain its initial level of output.
d. A firm restructures its distribution system and is able to save on its shipping times.
e. A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level.
Examples a, b, d, and e are examples of positive technological change. Examples a and e involve change that results in the firm being able to produce the same output with a smaller quantity of inputs. Examples b and d involve change that results in the firm being able to produce more output with the same amount of inputs. Example c is not an example of technological change, because an increase in inputs is used to produce the same quantity of output.
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What will be an ideal response?
The t-statistic measures
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