Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It increases competition among firms
B
It leads to a more skilled workforce, enhancing productivity
C
It reduces the total cost of production
D
It creates monopolies in the education sector
Understanding the Answer
Let's break down why this is correct
Answer
Innovation in education and training leads to positive externalities in production by improving the skills and knowledge of the workforce. When workers receive better education and training, they become more productive, which helps companies produce goods and services more efficiently. This increased productivity can lead to higher wages for employees and lower costs for consumers, benefiting the entire economy. For example, if a factory implements new training programs that teach workers advanced technologies, the factory can produce products faster and at a lower cost, which can lower prices for customers and increase profits for the business. Overall, these improvements create a ripple effect that positively impacts not just the company, but also the community and economy as a whole.
Detailed Explanation
When education and training improve, workers gain new skills. Other options are incorrect because Some might think that more competition is the main benefit; It's a common belief that better training always lowers costs.
Key Concepts
innovation
education and training
Topic
Positive Externalities in Production
Difficulty
medium level question
Cognitive Level
understand
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