Final answer:
Using overtime avoids the challenges of hiring but it doesn't typically result in higher productivity, which is often affected by other factors like the use of physical capital, economies of scale, and union wage demands.
Step-by-step explanation:
Among the options provided about the use of overtime for changing capacity, B) It typically results in higher productivity is NOT true. While using overtime can indeed avoid the challenges associated with hiring additional staff and can be implemented quickly, it does not necessarily lead to higher productivity. In fact, extended overtime can lead to employee burnout and reduced efficiency. Various factors including physical capital, economies of scale, and organizational responses to union wage demands can all impact labor productivity in different ways. In times of recession, firms may opt for overtime to temporarily meet demand without the costs of hiring and training new workers, but this strategy does not inherently raise employee productivity levels.