Question

An example of technological change is A. a firm rearranging the layout of a retail store to increase sales. B. a firm installing faster or more reliable machinery or equipment. C. a hurricane damaging firm facilities. D. both a and b E. all of the above.

Answer 1

Answer: E. all of the above.

Explanation: The examples listed in the options can all be seen as technological changes. A technological change is when a firm or organization is able to produce the same number of output using fewer inputs. It is the increase in the efficiency of a product or process that brings about an increase in output, without an increase in input. Rearranging the store's layout to improve sales is an increase in output; installation of faster or more reliable machinery or equipment would also increase output; a hurricane damaging firm facilities translates to the firm producing at normal capacity with fewer inputs (technological changes can also be negative). As such, the all of the above option is correct.

Answer 2

Answer:

B. a firm installing faster or more reliable machinery or equipment.