What Are the Two Primary Factors That Influence a Firm

question 18

Essay

What are the two primary factors that influence a firm manager's choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager's choice.

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Definitions:

State Income Taxes

Taxes levied by individual states on the income of individuals and businesses within their jurisdiction.

Payroll Taxes

Taxes that are withheld from employees' wages or paid by employers on behalf of their employees, typically including social security and medicare taxes.

Subcontractors

Individuals or companies hired by a primary contractor to perform specific tasks as part of a larger project.

Vendors

Businesses or individuals that supply goods or services to another business.