The substitution of steel for wooden ploughs in agricultural production is an example of
The substitution of steel for wooden ploughs in agricultural production is an example of
“Capital” in an economic context means machinery or capital goods which can be employed to produce other goods. Substitution of steel can be considered as the substitution of a lesser machine by a better machine. This encourages steel production. Hence it is a capital-augmenting technological progress.Tikdam: clearly labour reducing so capital augmenting