Question

The Custom Halloween Company purchases a new sewing machine to replace an older machine with limited capabilities. The first week the new machine is used production nearly doubles. Which economic principle does this illustrate?

Answer 1

For better terms the answer for me was A: The impact of capital investments. I just took the test and got 100%

Answer 2

Answer: Capital investment in new machinery

Capital investment in new machinery enables a company to produce more over a given period of time as compared to the old machine.

It also helps the company to take advantage of new orders in the markets and helps it increase its share in catering to the demand for its products