Choose the Statement That Is Incorrect

question 96

Multiple Choice

Choose the statement that is incorrect.

• A)Capital consists of the tools,instruments,machines,buildings,and other constructions that have been produced in the past and that businesses now use to produce goods and services.
• B)A market for capital services is a rental market.
• C)The services of the capital that a firm owns and operates have an implicit price that arises from depreciation and interest costs.
• D)Capital is a factor of production.
• E)Most capital services are traded in a market.

---

Definitions:

Chase Strategy

A production planning method that adjusts workforce levels and production rates to match demand, minimizing inventory levels and workforce costs.

Level Strategy

An inventory management strategy where production rates or workforce levels are kept constant despite demand fluctuations.