Technological change is how its company turns the inputs to the output of services and goods. It uses machines, natural resources and employees to produce those goods and services. The technology is dependent upon the skill of the trained workers, managers and the equipment's efficiency. Changes can occur with Technological change when a worker who is not fully trained is hired to do the job, which than can potentially cause failure in the output of a product.
Productivity declines in the short run when more labor is hired because more workers are being used relative to the amount of plant and equipment available. The purpose of calculating Marginal cost is to determine at what point can an organization achieve economies of scale. In my grid you can see that the marginal cost increased as the difference in loafs of bread reduced as the more workers were added.
The marginal cost is part of the average in total cost, therefore a change in marginal cost making the next unit of output effects the average cost causing an intersect at its lowest point. In my grid the lowest point starts between the 8th and 10th employee.
As the average variable cost and the average total cost curve get closer the total output increases. The more products you make the more you are able to afford to sell at a lower price.
Expanding the business can affect the economies of scale by the size of its company. Larger companies are usually more efficient, however on the flip side to that some can become so large that it can a company to suffer from diseconomies of scale. When a company expands on the operations in can lead into its Long Run. A company Long Run costs shows what happens to the average cost, as the company gets larger.