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Select the correct text in the passage.
Which statement demonstrates investing in physical capital to increase productivity?
Sanjay, the CEO of animation studio DesignX, has retired. His successor, Michael, decides to give the company a makeover. To make DesignX more
successful, Michael introduces some changes. He believes that projects will be finished faster if work happened round the clock,
so he extends working hours to 24 hours by introducing night shifts. He purchases licensed copies of an innovative new animation software.
He enters into a contract with a smaller studio for outsourcing smaller projects. He wants his staff to be on par with the best in the industry,
so he organizes free training workshops to upgrade the skills of in-house animators.



Answer :

GinnyAnswer
In the passage, the statement that demonstrates investing in physical capital to increase productivity is: - "He purchases licensed copies of an innovative new animation software." This statement shows the investment in physical capital, which refers to tangible assets like equipment, machinery, technology, or software that can enhance productivity in a business. By purchasing new animation software, Michael is acquiring a physical asset that can improve the efficiency and quality of work produced by the animators at DesignX. This investment in technology can lead to increased productivity, better output, and competitive advantage in the animation industry.

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