Question

Discuss the characteristics and implications of a change in technology as a short-run adjustment. How quickly can technology be altered, and what effects does it have on production in the short run?

Answer 1

A change in technology can have significant implications on production in the short run. The effects can include increased efficiency, cost reduction, and changes in output quantity and quality.

Step-by-step explanation:

In the short run, a change in technology can have significant implications on production. Technology can be altered at varying speeds depending on the industry and the specific advancements involved. The effects of a technological change on production in the short run can include increased efficiency, cost reduction, and changes in the quantity and quality of output.

For example, consider the introduction of automated machinery in a manufacturing plant. This technological change can lead to higher productivity and reduced production costs in the short run. With the implementation of automated machinery, the production process can become more efficient, reducing the amount of time and labor required for manufacturing. This can result in increased output without a proportional increase in input costs.