During the "computer revolution" of the 1980s and 1990s, many firms replaced old technology with new technology. What might explain why firms don't change technology as quickly today?
What will be an ideal response?
The marginal rate of technical substitution of old technology for new technology was low in the past, but the marginal rate of technical substitution of new technology for newer technology is higher today.
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The statement that "demand increases" means that there is a
A) movement to the right along a demand curve. B) movement to the left along a demand curve. C) rightward shift of the demand curve. D) leftward shift of the demand curve.
How does price serve as a signal to resource owners?
What will be an ideal response?
Average physical product measures the output per unit of input.
Answer the following statement true (T) or false (F)
The riskiness of an asset's returns due to changes in interest rates is
A) exchange-rate risk. B) price risk. C) asset risk. D) interest-rate risk.