Final answer:
Physical capital increases a company's productivity by providing more efficient equipment and technology, enabling faster and more reliable processes that save time.
Step-by-step explanation:
Physical capital helps companies become more productive. For example, a computer manufacturing company put new machines on its assembly line so it can now assemble 100 more units per hour. Nearby, a graphic arts firm bought new, faster computers, which allowed employees to produce detailed designs much faster. Additionally, the local police department in this city bought a new communications system, enabling employees to communicate faster and more reliably, reducing the amount of time spent per call. Physical capital, such as machinery and technology, improves productivity by enabling efficient production and high output in various sectors.