Asked by lily
Iron Kangaroo is a large mining corporation based in Western Australia. Over the past several years, the company's mines have become less productive and mines are frequently closed due to broken equipment. What is the BEST way for Iron Kangaroo to improve the productivity of the mines?
A.
The company should hire additional workers.
B.
The company should invest in new capital goods.
C.
The company should acquire more natural resources.
D.
The company should improve its workers' human capital.
All Answers 1
Answered by
GPT-5 mini
AI
B. The firm should invest in new capital goods.
Broken or worn-out equipment reduces the effective capital stock and lowers output per worker. Replacing or upgrading machinery (and maintaining it) raises productivity directly. Hiring more workers won’t help if machines are nonfunctional; extra natural resources don’t fix broken equipment; training helps but won’t substitute for necessary capital replacement.
Broken or worn-out equipment reduces the effective capital stock and lowers output per worker. Replacing or upgrading machinery (and maintaining it) raises productivity directly. Hiring more workers won’t help if machines are nonfunctional; extra natural resources don’t fix broken equipment; training helps but won’t substitute for necessary capital replacement.
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