Question

Why do businesses invest in capital goods? A. to encourage competition B. to encourage entrepreneurship C. to improve production D. to improve their employees' skills

Answer 1

Answer:

C. to improve production

Explanation:

Capital investment is a business term that describes an investment usually made by firms or organizations to enhance their business missions and vision.

This often turned into additional development in their capital system thereby leading to more productivity at a sustainable rate.

For example acquisition of manufacturing machines.

Hence, businesses invest in capital goods "to improve production."