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Author Question: A firm is less likely to invest in new capital if (Read 29 times)

lb_gilbert

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Question 1

If a firm is able to produce the same amount of output even after reducing its labor workforce, this implies that the firm has


◦ unplanned inventories.
◦ excess capital.
◦ excess labor.
◦ planned inventories.

Question 2

A firm is less likely to invest in new capital if


◦ the productivity of capital is high.
◦ it has no excess capital.
◦ it does not expect future sales to grow.
◦ it is expanding into new markets.


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Marked as best answer by lb_gilbert on Apr 19, 2019

AngeliqueG

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lb_gilbert

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Thank you!



AngeliqueG

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Always glad to help...



 

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