Rio Tinto's Incentive to Adopt New Robotic Technology Was Increased

question 43

Multiple Choice

Rio Tinto's incentive to adopt new robotic technology was increased by the high wages it was having to pay to attract miners and truck drivers.In this instance, Rio Tinto began using new robotic technology to

• A)add capital as a complementary resource for its labor.
• B)substitute labor for capital in production.
• C)substitute capital for labor in production.
• D)add labor as a complementary resource for its capital.

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Definitions:

Accounts Receivable

Outstanding payments from clients to a business for goods delivered or services rendered, awaiting settlement.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered or used but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes, interest, and operating expenses, from total revenue.