Higher capital utilization rates may raise the user costs of capital because higher utilization rates may imply:
A)operating at inconvenient times.
B)paying overtime to employees operating the machines.
C)operating when complementary services like transporters are unavailable or more expensive.
D)all of the above.

Question

Quizplus · Accepted Answer

Higher capital utilization rates may lead to operating at inconvenient times, paying overtime to employees operating the machines, and operating when complementary services like transporters are unavailable or more expensive. All these factors can increase the user costs of capital.

Higher Capital Utilization Rates May Raise the User Costs of Capital