Which of the following statements is correct?

Question

Improvements in technology increase worker productivity, holding other variables constant.

Costs are lower at every level of output.

Improvements in technology decrease worker productivity, holding other variables constant.

Improvements in technology result in higher marginal and average costs for each quantity produced.

Answer 1

The correct statement is:

Improvements in technology increase worker productivity, holding other variables constant.

This statement reflects the general understanding that advancements in technology can help workers produce more output in the same amount of time, thereby enhancing productivity. The other statements are not accurate in the context of technology improvements and their typical effects on costs and productivity.