When a New Personal Computer Is Purchased to Replace an Old

question 19

Multiple Choice

When a new personal computer is purchased to replace an old one, and the new PC is much better and faster than the old one, there has been

• A)an embodied technical change.
• B)a disembodied technical change.
• C)a fall in the output per unit of capital.
• D)capital "deepening".
• E)a rise in the capital- output ratio.

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Definitions:

Cost Center

A responsibility center that incurs costs but does not directly generate revenues.

Generates Revenues

Generates revenues refers to the activities or strategies a company employs to earn income from its business operations.

Profitability

A measure of the efficiency and financial success of a company, usually determined by the ratio of its profits to its revenues.

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.