If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is
A)human capital investment.
B)technological change.
C)a decrease in labor productivity.
D)a movement along a given per-worker production function.

Question

Quizplus · Accepted Answer

Technological change refers to a change in the ability of a firm to produce a given level of output with a given level of inputs. This can include advancements in machinery, software, or production methods that increase efficiency and productivity. Human capital investment may also result in increased productivity, but it typically refers to investments in education, training, and skills development for employees, rather than changes in technology. A decrease in labor productivity would result in a decrease in the amount of output that can be produced with a given level of inputs, whereas a movement along a given per-worker production function implies a change in the quantity of a specific input (such as labor) rather than an overall technological change.

If There Is a Change in the Ability of a Firm