Automation boosts capital and land intensity in car assembly

Steps:

• Identify changes: fewer firms mean less enterprise; larger sites require more land; automation increases capital use.
• Link to factors: capital (machinery) rises; land expands for bigger sites; labor decreases due to machines replacing workers.
• Enterprise falls with fewer firms coordinating production.
• Assess relative use: capital and land increase relative to labor and enterprise.

Why D is correct:

• Increased land (larger sites) and capital (automated machinery) align with factors of production, where capital substitutes labor in scaled operations.

Why the others are wrong:

• A: Enterprise likely decreases with fewer firms, not increases; labor decreases but land increases.
• B: Capital increases with automation, not decreases; enterprise decreases, not increases.
• C: Labor decreases due to automation, not increases; enterprise decreases, not land.

Final answer: D