Technological change: Technological
change refers to improvement in the process for producing goods and services,
changes in old product, or introduce of new product.
The technological change shifts the production
function upward.
The solid line represents maximum producible output
for each level to input given the state of technical knowledge in 1995. As a
result of improvements in computer technology and management practices,
technological change shifts the production function upward, allowing much more
output to be produced in 2009.
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