The Statement That Correctly Describes the Distinction Between Technology and Technological

question 222

Multiple Choice

The statement that correctly describes the distinction between technology and technological change is

• A)Technology refers to the processes used by a firm to transform inputs into output of goods and services, while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.
• B)Technology refers to the ability of a firm to increase its maximum output from a given quantity of inputs, and technological change is the process by which the firm achieves this productivity gain.
• C)Technology is product-centered in that it refers to developing new products with limited resources, while technological change is process-centered in that it focuses on developing new production techniques.
• D)Technology involves research and development, while technological change involves the use of more efficient machinery.

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Definitions:

Labor Supply Curve

A graphical representation showing the relationship between the quantity of labor that workers are willing to offer and the wage rate.

Opportunity Cost

Opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding other inputs constant.

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.