Chapter 38, Problem 2CYU

To determine

To find:

Reason for period of time pass before employees’ productivity is improved and reason for temporary decrease in employees’ productivity.

Explanation of Solution

Due to the adoption of new technology, there is a productivity growth. However, the time between implementation of new technology and employee’s upgradation is there. As the time passes, the level of productivity increases. The time between implementation of new technology and employees training leads to fall in the level of productivity growth. This is because, employees takes time to adjust with the new computer system, therefore the time passes.

Economics Concept Introduction

Production function shows the relation between input and output of a product. It shows the variation of output due to change in input.