Text #4190329

Perhaps the most important element in marginal cost which is likely to change in a different proportion from the wage-unit, and also to fluctuate within much wider limits, is marginal user cost. For marginal user cost may increase sharply when employment begins to improve, if (as will probably be the case) the increasing effective demand brings a rapid change in the prevailing expectation as to the date when the replacement of equipment will be necessary.

—from The General Theory of Employment, interest and Money, a book by J. M. Keynes

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