ECON 20 Lecture 13: Econ 20 - Lecture 13
3 Dec 2020
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Document Summary
The rise in the average rate of productivity growth: the microchip and information technology- the microchip has helped create a wide explain why the trend rate of productivity growth in canada increased since the earlier. Reasons for the productivity acceleration array of new products and services as well as new ways of doing business (pocket calculator, bar code scanner, laptop, etc). Information technology is the combination of the computer, fibre- optic cable, wireless technology, and the internet constitute a spectacular advance: new firms and increasing returns: Can purchase highly specialized inventory management systems and hire specialized personnel, such as accountants, marketing managers. Spreading of development costs- firms can spread high product development costs over greater output. Simultaneous consumption- recently developed products and services can satisfy large numbers of customers at the same time. Network effects- increases in the value of the product to each user, including existing users, as the total number of users rises.
