Furntech Corporation Manufactures and Markets Traditional and Computer-Related Office Products

question 65

Multiple Choice

Furntech Corporation manufactures and markets traditional and computer-related office products and supplies.The company is looking for ways to improve its productivity to become more competitive.Which one of the following actions of the company will be least effective in improving organizational productivity?

• A)It makes necessary changes to product design.
• B)It provides additional training to its workforce.
• C)It automates some of its lengthy processes.
• D)It attempts to improve its recruitment procedures.
• E)It reduces its level of production to focus on product quality.

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Definitions:

Optimal-output

The level of production that maximizes a firm's profit, where marginal cost equals marginal revenue.

Break-even

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms are making neither excess profits nor losses.

Short-run Equilibrium

Short-run Equilibrium occurs in a market when the quantity supplied equals the quantity demanded at a specific price level, without considering changes in the long run.