In Which of the Following Situations Would a Firm Be

question 97

Multiple Choice

In which of the following situations would a firm be more likely to rely on a capital-intensive method of production?

• A)When the rate of technological innovation is low.
• B)When capital is relatively expensive.
• C)When the firm's output cannot be produced using the assembly line method of production.
• D)When labor supply is limited relative to the available amount of capital.

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Definitions:

Ohmmeter

A device used to measure resistance.

Ammeter

An instrument used to measure the flow of current.

Voltmeter

An instrument used to measure a level of voltage.

Voltmeters

Instruments used to measure electrical potential difference between two points in an electric circuit.