Which of the following best explains why a company would choose to invest in additional physical capital? a. to decrease the current production of a good b. to increase the current production of a good c. in response to a recent decline in profits d. in response to a workers strike

Investments decisions are attached to net present value. To choose to invest in additional physical capital makes sense if that permits to increase the cash flow, which may come by adding production capacity of decrasing costs or boths. The BEST explanatins is that the option B. to increase the current production of good given that new machines (physical assets) are supposed to be used to produce more or more efficiently. So the answer is the option B.