A "Lights Out" Factory Relies Heavily on Which of the Four

question 14

Multiple Choice

A "lights out" factory relies heavily on which of the four factors of production?

• A) natural resources
• B) human resources
• C) capital/technology
• D) risk tolerance

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Definitions:

Payback Period

Payback Period is the length of time it takes for an investment to generate sufficient cash flow to recover its initial cost, used as a basic measure of investment risk.

Salvage Value

The calculated remaining value of an asset at the conclusion of its effective life.

Technician Costs

Technician costs refer to expenses related to employing or contracting technicians, including wages, benefits, and any training-related costs for technical staff.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.