You Own a Business That Answers Telephone Calls for Physicians

question 272

Multiple Choice

You own a business that answers telephone calls for physicians after their offices close.You have an incentive to substitute capital for labour if the

• A)price of capital increases.
• B)price of labour decreases.
• C)price of labour increases.
• D)marginal product of labour increases.

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Definitions:

Net Working Capital

The variance between an organization's immediate assets and its short-term liabilities, showcasing its financial stability in the short run.

Revolving Credit

A credit line where the customer can borrow up to a set limit, pay back, and then borrow again, offering flexibility in borrowing and repayment.

Financing Charge

An additional fee charged by a lender to a borrower for the use of borrowed funds, often expressed as an annual percentage rate.

Compensating Balance

A minimum account balance that a company agrees to maintain in a bank account to offset the cost of banking services provided.