Answer:
B) Innovation and technology
Explanation:
Technology is part of the capital factor of production, and it is the most important way of increasing the quality of capital. An increase in the quality of capital means that given a same amount of capital (e.g one machine), labor will be able to produce a larger output (an increase in productivity). Technological improvements are usually achieved through research and development.
Technological improvements also affect the land factor since they can reduce the use of natural resources and wastes, although the largest impact is usually made on labor productivity.
