The academic world has seen an enormous improvement in communications technology

Question

The academic world has seen an enormous improvement in communications technology. Internet, acces, distance learning. virtual classas are part of the discussion and many school are moving toward higher tech learning. Along with all of this has come a decline the price of electronic information. By using isoquants and isocost lines, tell a story you might expect to happen to faculty salaries. List your assumptions because your answer vary considerably depending on what you assume about the isoquants and ,isocost, hues. Use the graph below as your starting point

Explanation / Answer

Answer:

    The above graph shows that the relationship between the Capital or technology and faculty with the iso-quant lines. It is the relative and absolute price of technology for teaching has fallen and the optimal input combinations and has the same number of faculty working with more technology. It means that there is no change in faculty salaries due to the increase in technology. That is the demand for faculty hasn’t change.

     In this case the iso-quants-1 shifted to iso-quants-2 in the above graph. It could have been drawn differently with tangencies either to the left of right of the starting point. Any tangency to the left of the starting point would mean less faculty demanded and probably lower salaries. Tangencies to the right of the starting point would mean more faculty demand and higher salaries. It all depends on the nature of the production function as expressed in the iso-quants. For conclude, the technology always increases the quality of education with low cost of production in any manner.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.