Economics of Technology: Terms and Definitions, Quizzes of Ecology and Environment

Download Economics of Technology: Terms and Definitions and more Quizzes Ecology and Environment in PDF only on Docsity! TERM 1 Technology DEFINITION 1 a firm's technology is the processes that it uses to turn inputs into outputs of goods/services. ex: skill of workers, efficiency of machinery. TERM 2 Technological Change DEFINITION 2 a change in the ability of a firm to produce a given level of output with a given quantity of inputs. TERM 3 Positive Technological Change DEFINITION 3 make output using same inputs or same output using fewer inputs. TERM 4 Negative Technological Change DEFINITION 4 direct opposite of positive technological change. TERM 5 Short Run DEFINITION 5 at least one of the firm's inputs are fixed. ex: firm's technology and size of its physical plant are fixed while number of workers is variable. TERM 6 Long Run DEFINITION 6 in the long run, a firm is able to vary all of its inputs. ex: increase in technological change, changed size of physical plant. TERM 7 Total Cost DEFINITION 7 the cost of all inputs a firm uses in production. TC = fixed cost + variable cost TERM 8 Fixed Cost DEFINITION 8 costs that remain constant as output changes. ex: lease payment. TERM 9 Variable Cost DEFINITION 9 costs that change as output changes. ex: electricity, cost of raw materials, labor costs. TERM 10 Opportunity Cost DEFINITION 10 highest alternative given up.