When a Firm Is Able to Put Idle Equipment to Use

question 84

Multiple Choice

When a firm is able to put idle equipment to use by hiring another worker,what will result

• A)Variable costs will rise.
• B)Variable costs will fall.
• C)Fixed costs will fall.
• D)Fixed costs and variable costs will rise.

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Definitions:

Competitive Advantage

The unique attributes or circumstances that allow an organization to outperform its competitors.

Tangible Assets

Refers to physical and material assets that an organization owns, such as buildings, machinery, and inventory.

Human Capital

The sum of employees' knowledge, skills, experience, and commitment invested in the organization.

Superior Performance

Refers to achieving better than average outcomes and results in a given field or for a specific task compared to competitors or previous benchmarks.