technological change

Question 1

what is invention

Answer 1

creation of a new product or process that has not existed before, involves the discovery of something entirely novel

Question 2

what is innovation

Answer 2

the application of inventions to create a new product, service or process that adds value and involves improvement of existing ideas

Question 3

what are some effects of technological changes on methods of production

Answer 3

1)AUTOMATION; tech advances like robotics have automated production processes improving precision and efficiency

2)DIGITALISATION; development of devices used to optimise production schedules and detect faults early

Question 4

what are some effects of technological changes on productivity and efficiency

Answer 4

1)INCREASED PRODUCTIVITY: advanced tech leads to higher output per unit of input eg introduction of computer aided design (CAD)

2)EFFICIENCY GAINS: improved tech reduces waste and resource usage

Question 5

what are some effects of technological changes on costs of production

Answer 5

1)ECONOMIES OF SCALE; enhanced productive efficiency can result in eos, lowering average costs

Question 6

how do technological changes help with the development of new products

Answer 6

-r+d developments as companies invest in r+d to create innovative products eg pharmaceutical companies investing in developing new drugs (Pfizer,astrazeneca)

Question 7

how do technological changes help with the development of new markets

Answer 7

1)Market expansion; tech advances allow businesses to enter new markets allowing small businesses to sell globally

2)Emergence of new industries: new tech can give rise to new industries eg electric vehicles

Question 8

how do technological changes influence market structures

Answer 8

1)Disruption of traditional markets: innovative technologies can disrupt established market structures

2)Creation of oligopolies; certain technologies may lead to the dominance of a few large firms

Question 9

what is an oligopoly

Answer 9

a market structure characterised by a small number of large firms dominating the industry

Question 10

what characterises a monopoly and oligopoly

Answer 10

have over 25% share (oligopoly) whereas monopolies have 100%