Please explain or recommend a site where I can get a better understanding.
What would happen to average and marginal productivity if a technological innovation is introduced to the production process? Provide an example
To get a better understanding of the impact of a technological innovation on average and marginal productivity, I recommend visiting Khan Academy's website. Khan Academy is a free educational platform that offers lessons, tutorials, and practice exercises on a wide range of subjects, including economics.
To find information about the impact of technological innovation on productivity, follow these steps:
1. Go to the Khan Academy website (https://www.khanacademy.org/).
2. Use the search bar at the top of the page and enter "technological innovation and productivity" or a similar keyword.
3. Browse the search results and select the most relevant tutorial or lesson on the topic.
4. Read the material or watch the video to gain a better understanding of how technological innovation affects average and marginal productivity.
Now, let's answer your question:
When a technological innovation is introduced to the production process, it generally leads to an increase in both average and marginal productivity. Technological innovations often enable firms to produce more output with the same amount of inputs or resources, or to produce the same output with fewer inputs.
For example, let's consider a manufacturing company that introduces an advanced robotic system to its production line. This technological innovation allows the company to automate certain tasks previously performed by human workers. As a result, the company can produce a higher quantity of goods using the same amount of labor input. The average productivity of the workers increases because they are now contributing to a larger total output, and the marginal productivity rises because the additional output gained from each additional unit of labor input is greater.
In conclusion, the introduction of a technological innovation to the production process typically leads to an increase in both average and marginal productivity. I hope this explanation helps, and visiting Khan Academy will provide you with a more in-depth understanding of the topic.