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The use of capital in the production process ______.

A. is more expensive than labor.
B. replaces labor.
C. improves efficiency, reduces output, and provides for growth.
D. improves efficiency, increases output, and provides for growth.

User Rushane
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Answer:

The correct answer is letter "D": improves efficiency, increases output, and provides for growth.

Step-by-step explanation:

In general, capital refers to financial resources. Capital includes financial assets used in manufacturing, as well as the machinery and equipment businesses. Investors purchase stocks or mutual funds using capital. Companies raise capital from a bond or stock sales to fund their operations. Although capital may be cash or currency, it is not the same as money.

While talking about production, capital allows firms to hire qualified personnel that improves the company's efficiency which is likely to increase production or improve the quality of the output. Eventually, both an increase in efficiency and output contributes to the growth of an institution in the form of more profits.

User Jaspero
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