How can investing in technology directly affect labor productivity?

Investing in technology can significantly affect labor productivity through the automation of the production process. Automation streamlines operations, allowing tasks that would typically require human labor to be performed more efficiently and quickly by machines or software. This enables workers to focus on higher-value activities, such as overseeing the production process, quality control, or innovation, rather than on repetitive tasks that can be automated.

As a result, productivity increases because fewer errors occur, processes are completed in a shorter amount of time, and overall output can be enhanced without necessarily increasing the workforce size. This technological advancement not only boosts the efficiency of production but also allows companies to scale operations more effectively, ultimately leading to greater economic output per labor hour.

The other options do not accurately capture the positive impact of technology on labor productivity. For instance, increasing total operational costs does not directly link to enhanced productivity. While decreasing the number of workers needed can be an outcome of automation, it does not inherently result in improved productivity if the remaining workforce is not utilized effectively. Lastly, product quality can sometimes suffer with poor implementation of technology, but a well-implemented automation strategy typically leads to better consistency and quality in production. Thus, the correct choice highlights the core benefit of technology investment in enhancing labor productivity through automation