If the ratio of labor to capital increases,we can expect that labor productivity will increase.

Question

Quizplus · Accepted Answer

An increase in the ratio of labor to capital does not necessarily lead to an increase in labor productivity. Labor productivity is influenced by many factors, including technology, capital intensity, and the skill level of the workforce. Increasing the amount of labor relative to capital could actually decrease labor productivity if it leads to a less optimal mix of resources.

If the Ratio of Labor to Capital Increases,we Can Expect