To Minimize Costs, a Firm Should Use More Capital and Less

question 161

Multiple Choice

To minimize costs, a firm should use more capital and less labor if the product derived from the last dollar spent on labor is ________ the product derived from the last dollar spent on capital.

• A) less than
• B) greater than
• C) equal to
• D) either greater than or less than

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Definitions:

Service Cost

The total expense of providing a service, encompassing labor, materials, and overheads necessary to deliver the service to customers.

Customers' Waiting

The period that customers spend in a queue or delay before receiving a product, service, or response from a business.

Waiting Line

A queue of people or items waiting to be served or processed, common in service areas and manufacturing.

Line Length

denotes the physical length of a production or assembly line, which can affect efficiency, throughput, and space utilization in a manufacturing setting.