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How does technology enter the production function?

How does technology enter the production function?
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Answer #1

Technology refers to the knowledge and information used during the production process.

A positive change in technology alters the combination of good and services used in the production process and makes it cost effective.On the other hand,a negative change in the production process brings inefficiency in the production process and increases the cost of production.

Technological improvement increses the supply of product and bring down the cost and tehnological detoriation increase the cost and brings down the supply.

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