Question

Investment in physical capital is most likely to occur as a result of an increase in.

Answer 1

Investment in physical capital is most likely to occur as a result of an increase in demand or sales.

What is physical capital?

Physical capital is the capital a company needs or uses in production.

They include equipment, material s, and object that a company or firms uses in production process which is purchased as investment.

Therefore, Investment in physical capital is most likely to occur as a result of an increase in demand or sales.

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