A firm is considering opening a manufacturing plant in rural West Virginia. In analyzing costs, the firm has determined that labor in the area does not have the skill set to enable the firm to operate effectively. If it selects the West Virginia site, the firm will be faced with the additional cost of training employees. This is an example of:

Question

Quizplus · Accepted Answer

Investments in human capital refer to the expenses associated with improving the skills, abilities, and knowledge of employees. In this scenario, the cost of training employees to operate effectively at the new manufacturing plant represents an investment in human capital.

A Firm Is Considering Opening a Manufacturing Plant in Rural