When a firm adds capital,in the short run workers will be:
A)less productive and let the machines do most of the work.
B)more productive,since they have more equipment.
C)at the same level of productivity.
D)more productive at first and then less productive after a few weeks.

Question

Quizplus · Accepted Answer

When a firm adds capital, it usually means that they are investing in more equipment or machinery to increase production. This can lead to an increase in productivity for workers, as they have access to more advanced equipment and tools. However, this only applies in the short run - over time, workers may become accustomed to the new equipment and the productivity gains may level off. But in the short run, workers are generally more productive with more equipment available.

When a Firm Adds Capital,in the Short Run Workers Will