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How does the productive capacity of an industry impact the need for new investment?
  • a)
    Higher productive capacity reduces the need for new investment.
  • b)
    Higher productive capacity increases the need for new investment.
  • c)
    Productive capacity has no impact on new investment.
  • d)
    Productive capacity influences the propensity to consume.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
How does the productive capacity of an industry impact the need for ne...
When the existing productive capacity of an industry is fully utilized, any increase in demand for its products requires new investment in additional capital equipment. In such cases, higher productive capacity actually increases the need for new investment to meet the growing demand.
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How does the productive capacity of an industry impact the need for new investment?a)Higher productive capacity reduces the need for new investment.b)Higher productive capacity increases the need for new investment.c)Productive capacity has no impact on new investment.d)Productive capacity influences the propensity to consume.Correct answer is option 'B'. Can you explain this answer?
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How does the productive capacity of an industry impact the need for new investment?a)Higher productive capacity reduces the need for new investment.b)Higher productive capacity increases the need for new investment.c)Productive capacity has no impact on new investment.d)Productive capacity influences the propensity to consume.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How does the productive capacity of an industry impact the need for new investment?a)Higher productive capacity reduces the need for new investment.b)Higher productive capacity increases the need for new investment.c)Productive capacity has no impact on new investment.d)Productive capacity influences the propensity to consume.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How does the productive capacity of an industry impact the need for new investment?a)Higher productive capacity reduces the need for new investment.b)Higher productive capacity increases the need for new investment.c)Productive capacity has no impact on new investment.d)Productive capacity influences the propensity to consume.Correct answer is option 'B'. Can you explain this answer?.
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