Asked by
Ms.tatyana blackmon
on Dec 08, 2024Verified
You own a business that distributes restaurant menus to houses and apartments. You have an incentive to substitute labor for capital if the
A) price of capital decreases.
B) price of labor decreases.
C) price of labor increases.
D) marginal product of labor decreases.
Substitute Labor
involves using alternative workforce options, such as temporary or gig workers, in place of regular employees to perform tasks or jobs.
Price of Capital
The cost of using capital assets, reflected in the interest rate or rate of return that investors demand for using their capital.
- Comprehend and assess the impact of variations in input costs on decision-making related to production.
Verified Answer
LP
Learning Objectives
- Comprehend and assess the impact of variations in input costs on decision-making related to production.
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