Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The technology of production is essentially 'the way we do things' with a direct impact onthe amount and cost of capital and labor and result

The technology of production is essentially 'the way we do things' with a direct impact onthe amount and cost of capital and labor and result in the technological feasibility of input substitution. The two primary factors are the technology of the production process and the prices of the inputs of production. The technology determines the marginal productivity of the different inputs that can be used in the production process. Combining information on the marginal productivities with the respective prices of the inputs tells the manager how much output is produced per dollar spent on each input. With this information, the manager can then select the combination of inputs that yields a given level of output at least cost. Ford Motor Company introduced the assembly line technology, which utilized an assembly line set-up with specialized labor along the production line, resulted in much less time and cost required to assemble an individual automobile.

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

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

15th Edition

978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960

Students also viewed these Economics questions