Question

which of the following is (are) not implied by the technology s-curve? group of answer choices when a new technology is first introduced, performance tends to improve slowly. there is a stage during which the performance of the technology improves rapidly. at some point, additional expenditure of time and development effort fails to produce significant gains in performance. the rate at which new technologies are introduced is increasing. incumbent firms using a technology must consider whether to transition to the next new technology.

Answer 1

The technology S-curve does not imply that the rate of introduction of new technologies is increasing; it describes the performance of a single technology over time. Productivity growth from new technologies is not expected to slow, as they are adopted quickly and at low marginal costs, especially in countries with strong supporting institutions.

Step-by-step explanation:

The technology S-curve concept does not imply that the rate at which new technologies are introduced is increasing. The s-curve primarily illustrates the performance and adoption of a single technology over time. It suggests that when a new technology is introduced, improvements in performance improve slowly at first, then rapidly during a mid-life phase, and finally plateau as the technology matures and additional development yields few significant performance gains. Transitioning to new technologies, a consideration for incumbent firms, is not directly a part of the s-curve's descriptive process.

Moreover, contrary to the notion of diminishing returns in technological improvements, as suggested by the Industrial Revolution and modern advances, new production methods get adopted quickly and at low marginal costs, allowing productivity growth that does not slow. Countries with robust institutions for workforce training and machinery development tend to utilize new technologies efficiently, promoting further innovations and maintaining or increasing productivity gains.