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Technological Change

2 March, 2015 - 12:11

Technological changes can increase the marginal product of capital and thus boost the demand for capital.The discovery of new ways to integrate computers into production processes, for example, has dramatically increased the demand for capital in the last few years. Many universities are adding new classroom buildings or renovating old ones so they can better use computers in instruction, and businesses use computers in nearly every facet of operations.