What role does physical capital play in modern manufacturing?

Physical capital is essential in modern manufacturing as it plays a crucial role in facilitating high levels of production through the use of machinery, tools, and equipment. The correct answer emphasizes that modern manufacturing often requires substantial investments in physical capital per worker to achieve efficiency and productivity. This investment allows for advanced technologies and machinery to handle production tasks that would otherwise be labor-intensive.

For instance, in automated manufacturing environments, machines can perform repetitive tasks with high precision and speed, which leads to increased output and reduced time spent on production. The effectiveness of this physical capital enhances the ability of manufacturers to produce goods at scale, thus meeting market demand more effectively.

In contrast, the other options highlight different aspects that do not capture the primary role of physical capital in manufacturing. Minimal tools, high levels of human capital, or solely focusing on natural resources all miss the central importance of sophisticated physical capital in amplifying productivity and efficiency in modern manufacturing processes.