Technological advancement will
A) increase the marginal product of capital.
B) decrease the marginal product of capital.
C) have no effect on the marginal product of capital.
D) increase capital but leave the marginal product of capital unaffected.
E) increase investment but leave the marginal product of capital unaffected.

Question

Quizplus · Accepted Answer

Technological advancement will increase productivity and efficiency, leading to an increase in the marginal product of capital. This means that with the same amount of capital, workers are able to produce more output, resulting in higher returns on investment.

Technological Advancement Will