Question

Profit maximizing firms must make decisions regarding the use of technology. What is one of the Keydecisions all profit maximizing firms must make regarding the use of technology?

Answer 1

ANSWER:-

Profit maximizing firms must make decisions regarding the use of technology. one of the Keydecisions all profit maximizing firms must make regarding the use of technology.

• For a profit maximizing firm, the utilization of technology is an extensive choice as it has tremendous capital out streams for the business. As a venture choice, regularly firms fizzle since they consider enormous measures of advance without taking this would bring about increment sought after for the commidity or not.
• In the present situation, to pass judgment if an organization should utilize another technology or not, it ought to assess the Marginal Cost expansion which the presentation would make. Minimal expense is the expense of creating an extra amount of the commidity. In the event that the minimal expense is very high when the new technology is executed, some of it must be given to the client to ensure that net revenues continue as before.
• For this, we have to dissect the interest design for the association. In the event that the interest is moderately inelastic, implying that if with an expansion in value, the interest doesn't change or changes practically nothing, at that point presentation of the new technology could be suggested or the association should give it a pass.
• We can close by saying that the general interest and its versatility joined with the expansion in minor expenses are the two essential elements which an association must keep in its brain while choosing if or not it would utilize extra technology.
• On the off chance that it feels that the extra technology would acquire increment in supply which is supported up by request and expanding costs, at that point all things considered it ought to proceed with the procurement of the new technology or give it a pass.