3How does higher rate of net capital formation lead to higher level of

1.	3How does higher rate of net capital formation lead to higher level ofProductivity
Answer» Answer: Capital FORMATION implies an increase in capital assets such as plant and machinery, buildings and equipment available to the firm. Now, with a higher net capital formation, means higher capital equipments per unit of labour. This LEADS to a higher productivity/efficiency of labour.

3How does higher rate of net capital formation lead to higher level ofProductivity

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Answer:

Capital FORMATION implies an increase in capital assets such as plant and machinery, buildings and equipment available to the firm. Now, with a higher net capital formation, means higher capital equipments per unit of labour. This LEADS to a higher productivity/efficiency of labour.

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3How does higher rate of net capital formation lead to higher level ofProductivity