Higher capital utilization rates may raise user costs of capital because higher utilization rates may imply:
A)operating at inconvenient times.
B)off-peak utility prices.
C)less highway congestion.
D)all of the above.

Question

Quizplus · Accepted Answer

Higher capital utilization rates may imply operating at inconvenient times, which can increase user costs of capital. This is because businesses may have to pay higher wages or other expenses for employees to work outside of normal business hours. Off-peak utility prices and less highway congestion may actually lower user costs of capital by reducing operational expenses and transportation costs.

Higher Capital Utilization Rates May Raise User Costs of Capital