Industrial Revolution Essay

NKOSI DUNCAN MTHEMBU
24246700
PROF TEMPELHOFF
THE INDUSTRIAL REVOLUTION

INTRODUCTION
The term industrial revolution can be said it was a transition period were people started to use machinery instead of hand tools caused by the economic development as well as the social changes that occurred.
Industrial revolution was an increase in production because of technological developments through the use of machinery and use of energy sources that were believed they will minimize the cost of production and increase the level or unit of production and it took place in the 18th century. It is believed that china and India were the precursors of the industrial revolution.
According Penna (2010:172) the genesis of the calculus started in

Firstly, Britain had a great amount of deposits of coal and iron ore, they were even an established political society and they were the world’s leading colonial power, meaning that its colonies could supply them with a lot of raw materials, as well as a marketplace for manufactured goods. Britain’s goods were high in demand and they became the center of business because of the fact that their production was fast (Penna:

In the “growing-up” model, capital market failure is central to delayed diffusion. Outside capital was unable to enter the industry in response to profits and consequently super-profits or quasi-rents persist (Herly, 1999).

Expansion of the new technology was only financed out of these profits. In the neo-classical view, profit opportunities are rapidly exploited, attracting capital from elsewhere in the economy if necessary. The author further explains that Product prices fell and eliminated super-profits. A sample of three firms is, of course, too small to draw confident conclusions. In these firms profits fluctuated widely, but they do not appear obviously above the opportunity cost of capital in the economy when risk and management responsibilities are