Dead Capital Is

question 99

Multiple Choice

Dead capital is

• A) unlikely to have any productive use.
• B) unlikely to be applied to its most efficient use.
• C) useful only if employed in a labor-intensive production process.
• D) useful only if employed in a capital-intensive production process.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Total Revenue

The total amount of money generated by the sale of goods or services before any expenses are subtracted.

Fixed Cost

Expenses that do not vary with the level of production or sales, such as rent or salaries.

Variable Cost

Costs that vary directly with the level of production or with volume of output.