Suppose there’s only a limited demand for the goods produced and the other company uses technology that lets it fewer workers than the first one did.
“Labor-saving” innovations are simply increases in efficiency. If the new process allows more of the same (or equivalent) goods to be produced with less inputs, the price will drop and demand will increase. Significantly lower cost might even open up completely new applications for the goods.
“Labor-saving” innovations are simply increases in efficiency. If the new process allows more of the same (or equivalent) goods to be produced with less inputs, the price will drop and demand will increase. Significantly lower cost might even open up completely new applications for the goods.
I think I need to start over. Give me a while to think.