Factors on which Marginal efficiency of Capital Depends

Technological Development: If Inventions And Technological Development Take Place In The Industry The Prospects Of Increase In The Net Yield Brightens Up For Example The Development Of Automobiles In The 20th Century Has Greatly Stimulated The Rubber Industry The Steel And Oil Industry Etc So We Can Say That Inventions And Technological Improvements Encourage Investment In Various Projects And Increase Marginal Efficiency Of Capital.
The Quantity of Capital Goods of Relevant Types already in Existence: If The Quantity Of Any Particular Type Of Goods Is Available In Abundance In The Market And The Consumers Can Partially Or Fully Meet The Demand Then It Will Not Be Advantageous To Invest Money In That Particular Project So In Such Cases The Marginal Efficiency Of Capital Will Be Low.
(9) Rate of Taxes: Marginal Efficiency Of Capital Is Directly Influenced By The Rate Of Taxes Levied By The Government On Various Commodities When Taxes Are Levied The Cost Of Commodities Is Increased And The Revenue Is Lowered When Profits Are Reduced, Marginal Efficiency Of Capital Will Naturally Be Affected It Will Be Low.