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2006-11-13 14:13:31 · 2 answers · asked by substance 2 in Social Science Economics

2 answers

A simple explaination is the shovels and bull dozers. A wheel barrow and a shovel don't cost much. Minimum capital, but a man with a wheel barrow and a shovel can't move as much dirt as a man with a bulldozer. But a bulldozer cost a lot more than a shovel.

The output, moving dirt, is increased per worker by providing additional capital (bulldozer).

2006-11-13 14:22:57 · answer #1 · answered by Roadkill 6 · 1 0

Simply put "capital" (money) spent to improve the process (what ever it may be) will let each worker make more "product", usually with less effort. More product, more sales.

2006-11-13 14:22:02 · answer #2 · answered by T C 6 · 0 0

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