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 firm can make a profit from the productivity of the new worker.

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 worker brings new skills and experience that can be taught to other workers.

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

Hiring an additional worker can enhance human capital by introducing new skills and experiences to the team. This worker can train existing employees, fostering a more competent workforce. Ultimately, the new hire leads to increased overall productivity and skill development within the organization.

Explanation:

Increasing Human Capital Through Hiring

Hiring an additional worker can significantly impact a company's human capital by bringing in new skills and experiences. Specifically, if the new employee possesses unique abilities or knowledge, they can enhance the overall competency of the workforce. This is particularly useful if the new worker can train existing employees, thereby embedding their skills into the team and enhancing overall productivity.

For instance, consider a tech company that hires a software developer fluent in a new programming language. This developer can share their expertise with the team, leading to a more skilled workforce adept at modern technologies. As a result, the company not only benefits from the new hire’s individual contributions but also enhances the capabilities of all team members, illustrating how hiring can directly contribute to an organization's human capital.

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