When a firm experiences a positive technological change
A)the price of a share of the firm's stock rises.
B)the firm is able to produce more output using the same inputs, or the same output using fewer inputs.
C)the value of the firm's assets rises.
D)the firm will hire additional workers in order to increase production.

Question

Quizplus · Accepted Answer

A positive technological change allows a firm to either produce more output using the same inputs or produce the same output using fewer inputs. This can lead to increased efficiency and profitability for the firm. It may also result in the firm being able to charge lower prices, which can make their products more attractive to consumers and increase demand. However, the other options (A, C, and D) are not necessarily true in every case of positive technological change. The price of a share of the firm's stock may or may not rise, depending on a variety of factors. The value of the firm's assets may or may not rise, as some assets may become obsolete due to the technological change. The firm may or may not hire additional workers, as it may be able to increase output without hiring more labor.

When a Firm Experiences a Positive Technological Change