The Custom Halloween Company purchases a new sewing machine to replace an older machine with limited capabilities. The first week the new machine is used production nearly doubles. Which economic principle does this illustrate?

The impact of capital investments

The law of diminishing returns

The law of supply and demand

The risk of an investment vehicle

Question

The Custom Halloween Company purchases a new sewing machine to replace an older machine with limited capabilities. The first week the new machine is used production nearly doubles. Which economic principle does this illustrate?

The impact of capital investments

The law of diminishing returns

The law of supply and demand

The risk of an investment vehicle

anonymous · Answer

@bibby Helppp

monkeys · Answer

A

anonymous · Answer

It is A because the company purchased machinery which is capital equipment, and is a form of productive investment.

monkeys · Answer

thanks for explaning it to him
:)