The Degree of a Factor's Specificity Is Directly Related to

question 16

Multiple Choice

The degree of a factor's specificity is directly related to

• A) the cost of the factor as a proportion of the long-run total cost of production.
• B) technology differences between two countries, with a more advanced technology resulting in more factor specificity.
• C) the amount of time required to redeploy the factor to a different industry.
• D) factor quality, with higher quality factors having a higher level of specificity.
• E) the mobility of the factor, with more mobile factors having more specificity.

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Definitions:

Accounts Payable Period

The average period it takes a company to pay its invoices from suppliers and vendors.

Cash Expenses

Expenses that require an immediate outflow of cash, as opposed to non-cash expenses like depreciation.

Beginning Cash Balance

The amount of cash a company has at the start of a financial period.

Short-Term Loan

A loan scheduled to be repaid in less than a year, typically used for immediate or emergency financial needs.