The expenditure of a firm on goods and services for the expansion of its productive capacity is known as
Answer Details
The expenditure of a firm on goods and services for the expansion of its productive capacity is known as investment. Investment can include the purchase of capital goods, such as machinery, equipment, and buildings, as well as research and development activities. This expenditure is made with the expectation that it will generate future returns and contribute to the growth and profitability of the firm. Investment is important for economic growth because it leads to increased productivity and job creation, which in turn can lead to higher incomes and improved standards of living.