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. do 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 :

In the passage, the statement that demonstrates investing in physical capital to increase productivity is when Michael purchases licensed copies of an innovative new animation software.

Here's why this statement reflects investing in physical capital to boost productivity:
1. Physical Capital: The animation software is a tangible asset that falls under the category of physical capital. It is a tool or resource used in the production process.
2. Increase Productivity: By acquiring this new animation software, Michael aims to enhance the efficiency and effectiveness of the animation production at DesignX. This investment is geared towards improving the output and performance of the studio.
3. Impact on Work: Utilizing the new software can streamline processes, enhance creativity, and potentially speed up project completion, all contributing to increased productivity within the company.

In summary, out of the actions taken by Michael, purchasing licensed copies of the innovative animation software directly aligns with investing in physical capital to elevate productivity within DesignX.