Which Pair of Firms Has the LEAST Resource Similarity

question 2

Multiple Choice

Which pair of firms has the LEAST resource similarity?

• A) McDonalds and Microsoft
• B) Target and Wal-Mart
• C) HP and Dell
• D) FedEx and UPS

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Definitions:

Labor Cost

The total sum of all compensation that a business must pay to its employees, including wages, benefits, and taxes.

Productivity Of Labor

Productivity of labor measures the output that is produced per unit of labor employed, reflecting how efficiently labor resources are utilized in the production process.

Production Possibilities Frontier (PPF)

A curve depicting all the possible combinations of two goods that can be produced within an economy, given a set of inputs and technology, assuming efficiency in production.

Labor Deepening Technology

Refers to investments in technology that increase the productivity of each worker.