When firms are able to increase the amount of physical capital available to workers, the:

Question

Quizplus · Accepted Answer

Increasing physical capital available to workers will increase productivity and efficiency, resulting in a higher value of the marginal product of labour. This means that the output produced by each worker is worth more, leading to potential increases in wages and profits. The final product price may or may not increase depending on market conditions, but it is not directly related to the increase in physical capital. The marginal product of labour may decline if other factors, such as technology or worker abilities, do not improve along with the increase in physical capital.

When Firms Are Able to Increase the Amount of Physical