tech change Flashcards
1
Q
invention vs innovation
A
invention: creation of a new idea without it necessarily becoming a commercial reality (creative destruction: netflix, streaming services)
-innovation: transforming invention into commercial reality
can lead to more capital or labour intensive production
2
Q
graph of tech change and efficiencies
A
-fall in LRAC, q1 increases
-productive, allocative and dynamic efficiency
3
Q
effect of technoloigcal change on market structures
A
-no. of firms (lower barriers to entry), productive homogeneity, knowledge
