Higher Capital Utilization Rates May Raise User Costs of Capital

question 54

Multiple Choice

Higher capital utilization rates may raise user costs of capital because higher utilization rates may imply:

• A)less highway congestion.
• B)paying overtime to employees operating the machines.
• C)off peak utility prices.
• D)all of the above.

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Definitions:

Financial Decisions

Choices made regarding the management, investment, and expenditure of money.

Selling Price

The amount for which a product or service is sold to the customer.

Disgust

An intense feeling of revulsion or profound disapproval aroused by something unpleasant or offensive.

Broaden-and-build Hypothesis

A theory in positive psychology that suggests positive emotions broaden one's awareness and encourage novel, varied, and exploratory thoughts and actions.