Tag: affect
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Positive impacts of Technology
Impact of technological change on Costs The average cost will lower, thus achieving economies of scale whereas the initial cost of the technological change will be huge Labour requirements Less labour is required after technological change, or the labour is required to do training programs Methods of production Methods of production will change…
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Interest rate affect
How higher interest rates affect business It will discourage managers to take further loans If the business is providing luxurious goods, the demand will fall because the consumers will be less willing to take loan on higher interest rates Businesses with existing loan will have to pay more interest resulting in less net profit