If a Good Is Capital Intensive It Means That the Good

question 23

Multiple Choice

If a good is capital intensive it means that the good is produced

• A) using relatively more capital than goods that are not labor intensive.
• B) using capital as the only input.
• C) using more capital per unit of output than goods that are not capital intensive.
• D) using capital such that the total cost of capital is greater than the total cost of labor.
• E) using capital such that the cost of capital is more than 50% of total cost.

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Definitions:

Rent Expense

A periodic payment made by a tenant to a landlord for the use of premises, buildings, or land.

Razor-And-Razor-Blade Model

A business strategy whereby a company sells a product at a low price (or gives it away for free) to drive the sales of complementary goods, such as consumables.

Intermediation Revenue Model

A business approach where a company earns income by acting as a middleman between two parties, typically in a transaction.

Introductory Offer

A special deal or promotion offered to attract new customers or to introduce a new product or service.