A Firm Practices Input Substitution When It

question 81

Multiple Choice

A firm practices input substitution when it

• A)retrains Joe the welder as a painter and Pat the painter as a welder.
• B)buys extra machines for its workers to use.
• C)allows fixed cost to become variable.
• D)replaces unskilled labor with automated machinery.

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Definitions:

Demands

Requests or claims, typically forceful, for something considered due or legally owed.

Binding Decision

A decision, ruling, or judgment that is final and enforceable by law, requiring the parties involved to comply.

Discovery

A pre-trial procedure in a lawsuit where each party can obtain evidence from the other party or parties by means of discovery devices such as interrogatories, depositions, requests for production of documents.

Arbitrator

A neutral third party chosen to settle disputes outside of court.