SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.12) Is it possible for technological change to be negative? If so, give an example.12)Answer: Technological change could be negative, for instance, when a natural disaster hits,or when a firm hires less-experienced workers. In these cases, the firm wouldproduce a lower level of output with the same inputs.Diff: 2Page Ref: 354/354Topic: Technological ChangeLearning Outcome: Micro 9: Discuss the fundamental characteristics of firmsAACSB: Reflective Thinking13) Describe how Wal-Mart has used positive technological change to manage its inventory.13)Answer: Wal-Mart uses aʺjust-in-timeʺinventory system to manage its inventory.Company founder Sam Walton built a series of distribution centers across thecountry to supply goods to the retail stores. As goods are sold in stores, salesinformation is sent electronically to the distribution centers to help managersdetermine what merchandise to ship to each store, with the shipments often beingreceived overnight. This allows Wal-Mart to minimize its inventory holdingswithout running the risk of many stockouts occurring. Wal-Mart has involvedmany of its suppliers in this process, which allows these manufacturers to moreefficiently determine production schedules and the quantities to be shipped toWal-Mart.Diff: 2Page Ref: 354-355/354-355Topic: TechnologyLearning Outcome: Micro 12: Apply methods for measuring and analyzing the effects of inputs andcosts on the supply curveAACSB: Reflective ThinkingMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
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