For a given technology, a higher capital stock will decrease labor productivity.

Name: For a given technology, a higher capital stock will decrease labor productivity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A higher capital stock actually increases labor productivity through the complementary relationship between capital and labor. Having more capital allows workers to work more efficiently and effectively, resulting in higher productivity.

For a Given Technology, a Higher Capital Stock Will Decrease