Technology

Competeition fuels development and can either increase the productivity of workers or the amount of output each worker can produce.

A firms technolgy is the processes it uses to tur inputs into outputs of goods and services.

A firm experiences positive technoligcal change when it is able to porduce more output using the same amount or fewer inputs.

A firm experinces negative tech change if hiring less skilled workers or damage to its facilitites. The output it can produce from a constant input could decline

When firms analyze production levels and cost they seperate the time period involved into the short run and long run.

In the short one at least one of the frms inuts is fixed. Where workers and firm hires are variables.

In the long run thhe firm varies all of its inputs adopt new tech and up or downsize.

Total cost is te cost of all inputs a firm uses fixed cost are a constant as output changes, variable cost

Marginal production cost is the additoanl output divided by the addatioal inout