The big differences between capital and labor include:

Question

Quizplus · Accepted Answer

All of the three options A, B, and C are true statements that highlight the big differences between capital and labor. Option A refers to the fact that the revenues generated by holding capital can be earned over extended periods of time, depending on the type and nature of capital. Option B highlights that the costs of holding capital, such as maintenance and depreciation, are also spread out over time rather than being incurred all at once. Finally, option C states that capital is not in itself a final product or service, but rather a factor of production that is used to create other goods and services. Together, these three options establish that there are fundamental differences in terms of cost, revenue, and usage between capital and labor.

The Big Differences Between Capital and Labor Include