It is often stated that the Japanese firms develop and adapt new technology to manufacturing process twice as fast as U.S.firms.If this is true,ceteris paribus,we would conclude that the

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If Japanese firms adapt new technology to manufacturing processes faster than U.S. firms, it implies that their capital (equipment, machinery, etc.) becomes obsolete more quickly, hence the depreciation rate of capital increases. Additionally, as newer technologies are adopted, the cost of using capital (user cost of capital) also increases due to the need for continuous investment in the latest technologies.

It Is Often Stated That the Japanese Firms Develop and Adapt