Question

Give an example of a firm or industry that has exhibited dramatic technological progress in the recent past. Was this technological progress an example of neutral technical change or was it capital saving or labor saving technical change?

Answer 1

Solar energy production has gained dramatic increase in technological progress during recent past. The cost has been dramatically decrease due to the technological innovation by 60 percent. The technology enhances the efficiency of solar power production by improving the quality of silicon chip. Photo voltac technology uses better material. Hence it was widely installed in the China India USA and other countries. Solar power is one of the leading renewable energy source that basically enhance the capital savings. It require less amount of capital after technological progress. Hence solar power plant manage capital cost-effectively with higher production of renewable energy. There is no such increase or decrease in the requirement of labour for the solar power plant, as there is no such requirement it of of labour input mechanically except in case of maintenance and servicing.