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Read the factors of production for two businesses: In Case manufactures cases for smart phones, while Wrap It Up is a gift-wrapping service. In Case • $1,500 a month for rented building • Will need two new employees • $2,000 for inventory expenses • $4,500 for equipment expenses Wrap It Up • $1,500 a month for a rented store • Will need five new employees • $1,500 for inventory expenses • $2,500 for equipment expenses Which statement correctly compares the two businesses? In Case will require a less costly investment in labor, while Wrap It Up will require less capital in the long term. In Case will require less capital in the long term, while Wrap It Up will require a less costly investment in labor. In Case will require a more costly investment in land, while Wrap It Up will have higher inventory costs. In Case will have higher inventory costs, while Wrap It Up will require a more costly investment in land.

Sagot :

bihariyadeep28

The two companies In Case and Wrap it up are involved in manufacturing and gift wrapping service respectively. Their numbers and data are given as follows:

Given

Data of In case

Rent: $1,500

Employee requirement: 2

Inventory expenses: $2,000

Equipment expenses: $4,500

Data of Wrap It Up

Rent: $1,500

Employee requirement: 5

Inventory expenses: $1,500

Equipment expenses: $2,500

The data of Wrap It Up and In case when compared , shows that the rent for both the businesses is same. The labor requirement is more in Wrap It Up than that of In Case.

The capital  requirements are more for In Case and comparatively less for Wrap It Up in the long term.

Therefore the correct statement is " In Case will require a less costly investment in labor, while Wrap It Up will require less capital in the long term" OPTION A is correct.

Learn more about the concept here:

brainly.com/question/16902102

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