Capital Immobility

• Capital immobility can occur as a result of:​

  • Rapid technological change​ as changing technology can make machinery obsolete
  • This leads to costs for the firm as they update capital equipment
• Capital immobility can occur as a result of:​

  • as the types of industry that make up the economy change so does the type of capital equipment needed​
  • Equipment for coal mining cannot be put to use