Explain one way in which hiring an additional worker could lead to an increase in human capital.

A. Hiring an additional worker could lead to an increase in human capital if the worker is able to produce more output per number of labor hours worked than other workers.

B. Hiring an additional worker alone will lead to an increase in human capital.

C. Hiring an additional worker could lead to an increase in human capital if the firm is able to make a profit from the productivity of the new worker.

D. Hiring an additional worker could lead to an increase in human capital if the worker brings new skills and experience that can be taught to other workers.

Hiring an additional worker increases human capital if they bring new skills, expertise, or perspectives that improve the skills of existing employees, thus boosting productivity and profit while reducing turnover.

Explanation:

Hiring an additional worker could lead to an increase in human capital in a few essential ways. Primarily, if the new worker brings a unique set of skills, expertise, or even a fresh perspective that is new to the firm, their presence can help teach and improve the skills of existing workers. For instance, if a company hires a data analyst who has expertise in a particular analytical tool, other employees in the firm could learn from this individual, thus elevating the company's collective skill set.

This addition would undoubtedly lead to an increase in productivity and output per labor hour worked; thus, leading to profit growth. More so, the learning and development opportunities offered to existing staff in learning from the new staff lead to employees' general motivation and commitment, strengthening retention and reducing turnover.

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