Final answer:
Altering the availability of capacity can be achieved by implementing automation, which enables efficient production processes and potentially increases output. The decision on which strategy to employ depends on factors like cost and the firm's objectives, including how to best use human capital.
Step-by-step explanation:
One option for altering the availability of capacity is implementing automation. This refers to the use of machines to perform tasks that would otherwise require human labor. Increasing production capacity through automation may involve the use of technology that allows for a more efficient production process, leading to higher output with the same or fewer inputs. For instance, if machine hours become cheaper, a firm might shift towards more machine-intensive production methods. Conversely, if the cost of machines increases, a firm might choose a technology that is less capital-intensive and uses more labor, as might be the case with production technology 2.
To increase human capital and better leverage the workforce, providing training to employees or investing in education can also alter capacity availability indirectly. This way, even though the number of workers or hours worked remains the same, the overall productivity can increase due to the elevated skill levels. Therefore, options such as increasing or decreasing production, hiring more employees or implementing automation are all valid strategies which depend on the specific cost structure and goals of the company.