Microeconomics cost and innovation

User Generated

gq4422

Business Finance

Description

Describe an example you are familiar with in which a technological innovation led to an improvement in productivity. What was the effect on the cost of doing business or activity in which this technology was employed?

150 words

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Explanation & Answer

Well, Henry Ford is perfect for this. He innovated the technology concerning production completely. He invented an entirely new method, where multiple individuals were the parts to the machinery. This was the assembly line. The assembly line increased productivity a lot, so many more cars were being produced, at a more cost efficient price. Instead of making cars one at a time. They were all being made at the same time, one part at a time. So it probably costed a little more to pay people to work on the assembly lines, but the amount of production afterwords was worth the cost. Because he got rich. Many people could afford to buy the cars, because there were so many, that were being produced at such a low cost, he could charge low amounts of money for his product, and still make a profit.


I don't know how many words that is, but you could add some of your own words still. Make it yours.

Take care kiddo.


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