You own a business that answers telephone calls for physicians after their offices close.You have an incentive to substitute capital for labor if the
A)price of capital increases.
B)price of labor decreases.
C)price of labor increases.
D)marginal product of labor increases.

Question

Quizplus · Accepted Answer

If the price of labor increases, it becomes more costly to employ labor, providing an incentive to substitute capital (such as automated systems) for labor to reduce costs.

You Own a Business That Answers Telephone Calls for Physicians