A change in technology or the relative prices of the inputs used in a production process would cause a manager's choice of inputs to use in the production process to change as well.

Question

Quizplus · Accepted Answer

A change in technology, such as the introduction of a new machinery or software, can impact the efficiency of inputs and alter the selection of inputs in the production process. Similarly, when the prices of input resources change, a manager may shift towards using less expensive inputs or exploring other options to maintain profitability.

A Change in Technology or the Relative Prices of the Inputs