Additional workers – in a firm, in the economy – are endowed with the same amount of physical capital as those previously employed (the situation where capital stock is increasing at the same rate as the labor force, thus capital per worker remains constant). Thus, labor productivity does not change. – See capital deepening.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/