Essay about The Impact of Technology on Production and Short-Run Curves

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The Impact of Technology on Production and Short-run Curves

Technology is the knowledge of using tools and machines to do tasks more efficiently. We use technology to control the world we live in. Since the art of making fire and creating handcrafted tools, our civilization has come a long way. Technology today has a great importance on production. Every advancement on technology makes the production easier, quicker and at a low cost. Technology has a great impact on short-run curves by when technology advances then production of units will increase.
When technology advances so does the production of units increase which causes the average variable cost, which is the costs that vary with the quantity produced, to decrease. Also as the
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Diminishing returns is as one input increases and other inputs are fixed then the output increases at a decreasing rate. With the spreading of the fixed cost continuing, it pulls down the average total cost. Also the diminishing returns and increasing average variable cost pushes the average total cost up. This effect is called the tug of war effect and the outcome depends on the quantity of units being produced. With the tug of war effect it gives the average total cost curve its U shape. The short-run marginal cost, which is the change in short-run total cost per unit divided by the change in the output, is impacted by technology by it decreases because the productivity of units are increased at a lower cost.

This is why it is always important to keep firms up to the new technology and advancements in order to stay in the competitive market with other firms.
Technology is one of the principal driving forces of the future; it is transforming our lives and shaping our future. Technology is constantly changing, and advancing. Technology is often considered the key to a nation's economic growth. Many jobs may be lost in one industry but new jobs may

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