By Producing Less, a Firm Can Reduce

question 43

Multiple Choice

By producing less, a firm can reduce

• A) its fixed costs and its variable costs.
• B) its fixed costs but not its variable costs.
• C) its variable costs but not its fixed costs.
• D) neither its variable costs nor its fixed costs.

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Definitions:

Team-based Pay

A compensation strategy where pay is based on the performance of the team as a whole, rather than individual performance.

Performance Programs

Structured initiatives designed to improve the efficiency and effectiveness of an organization or individual's work.

Operational Outcomes

The results or effects of a business's operations, typically measured in terms of efficiency, productivity, and profitability.

Gain-sharing

A compensation strategy where employees receive additional financial benefits from improvements in productivity or the company's performance.