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Capital Investment vs. College Education

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How does capital investment affect the marginal physical product of labor? Does more college education have the same kind of effect? Which is a better investment?

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Solution Summary

The solution examines capital investment versus college education. The affect of marginal physical product of labor is determined.

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With capital, we mean investments in technology. Capital investment such as machinery and equipment to enhance the productivity of labor can increase the marginal product of labor. In other words, capital investment can enhance productivity of labor given ...

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