Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8.5uppose that, prior to a technological change (innovation) in an industry, at existing factor prices, it takes 30 units of capital and 100 units of

image text in transcribed
8.5uppose that, prior to a technological change (innovation) in an industry, at existing factor prices, it takes 30 units of capital and 100 units of labor to produce 500 units of good X. (Assume that capital and labor are the only two factors of production.) After the innovation, it takes 25 units of capital and 50 units of labor to produce 500 units of good X (at the same factors of production.) After the innovation, it takes 25 units of capital and 50 units of labor to produce 500 units of good X (at the same factor prices as before the innovation). In this situation, the technological change would be classied as a _ technological change. Multiple Choice -capital-saving and labor-saving -labor-saving -capital-saving -neutra|

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Water Pollution Economics Aspects And Research Needs

Authors: Allen V Kneese

1st Edition

1317387554, 9781317387558

More Books

Students also viewed these Economics questions

Question

Find vo in the circuit of Fig. 13.79. 0.S H 24 cos 2t V 2 H 0.SF

Answered: 1 week ago