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

Question

Quizplus · Accepted Answer

When the price of labour increases, it becomes more costly to employ workers, making it financially beneficial to substitute labour with capital (such as automated systems or machines) to reduce costs.

You Own a Business That Answers Telephone Calls for Physicians