Capital Deepening Refers To

question 73

Multiple Choice

Capital deepening refers to:

• A)an increase in the amount of capital per worker.
• B)an increase in the amount of workers per unit of capital.
• C)a decrease in the amount of capital per unit of output.
• D)an increase in the amount of output per unit of capital.
• E)an increase in the productivity of capital.

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Definitions:

Lag Strategy

A business approach where the decision to increase capacity is delayed until demand has proven to sustain at a higher level.

Subcontractors

Third-party businesses or individuals hired to perform part of the work that was originally contracted by another company.

New Facilities

Refers to the construction or opening of new physical buildings or infrastructure for business or operational use.

Break-Even

is a financial term indicating the point at which costs or expenses and revenue are equal, resulting in no net loss or gain.