Production - Production(Continued Other possible forms of...

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Production (Continued)
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- Other possible forms of production functions: quadratic and cubic forms - Case Study in Text Book:: Poultry Production in the United States
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Technological Change and Industrial Innovation Technological change: a change (improvement) in the production function due to (1) the invention of new methods of producing existing products, (2) the invention of new products, and (3) the invention of new techniques of organization, marketing, and management. The aim is to increase labor and total productivity
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Could be reflected in a shift in the relative location of an isoquant:
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Measuring Technology Through Changes in Labor Productivity Increases in Labor Productivity (the ratio of output to labor input, or average product of labor) is pursued by firms to track performance. The rate of technological change is highly correlated with the rate of increase in Labor Productivity – so changes in Labor Productivity are used as a measure of changes in technology. One problem is that labor productivity increases not only because of technological change; capital (machinery, buildings) or capital utilization increases (capital formation) will also increase Labor Productivity.
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Changes in labor Productivity can Produce False Signals Concerning the Rate of Technological Change:
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This note was uploaded on 04/07/2008 for the course ECON 2010 taught by Professor Devkota during the Spring '08 term at Rensselaer Polytechnic Institute.

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Production - Production(Continued Other possible forms of...

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