Segment.com reorganized its office as part of its "anti-distraction campaign." According to an article in the Wall Street Joumal, the company cut back on its internal text messaging service and moved "some of its communication back to email to
reduce the number of notifications employees were receiving."
Source: Rachel Feintzeig, "How One Firm Lowered Its Open-Office Noise," Wall Street Journal, November 15, 2016.
Does this movement from a new technology---text messaging---to an older technology---email---represent positive or negative technological change at Segment? Briefly explain.
A. Positive technological change, because more output can be produced using the same inputs.
B. Negative technological change, because output from a given quantity of inputs may decline.
C. Positive technological change, because output can be produced at a lower cost.
D. Negative technological change, because the old technology had already been available.
Suppose that competition for software engineers results in Segment.com having to pay them higher salaries. Would the fact that the firm will now face an increased cost of providing its services be an example of negative technological change?
Briefly explain.
A. No, this would not represent technological change because the same output can be produced using the same inputs.
B. No, this would not represent technological change because the output's price will rise with workers' wages.
C. Yes, this represents negative technological change because the cost of producing the same output has increased.
D. Yes, this is an example of negative technological change because fewer workers will be hired, reducing output.
