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Evaluating a Production Shift

A textile factory traditionally employed 100 workers and used 1,000 kilowatt-hours of energy per day to produce 500 units of cloth. The factory installs new automated looms. It now employs only 20 workers and uses 600 kilowatt-hours of energy per day, but still produces 500 units of cloth. The new machinery required a significant financial investment. Analyze this scenario to determine if it represents technological progress. In your answer, explain how the changes in labor, energy, and capital inputs collectively contribute to your conclusion.

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Updated 2025-07-16

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