Which Factors Explain Downsizing and Refocusing

question 67

Multiple Choice

Which factors explain downsizing and refocusing?

• A)Internal competition and the development of the internet
• B)A greater turbulence in the environment, and the emergence of efficient and reliable suppliers of outsourcing services
• C)Top managers and employees have lost confidence in firms as a way to organize economic activities
• D)None of the above

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Definitions:

Employment of Land

The use of land resources for productive or economic activities, including farming, building, or conservation efforts.

Substitution Effect

The economic principle that as the price of one good increases, consumers will replace it with a cheaper alternative, assuming the utility derived remains unchanged.

Output Effect

The effect that changes in the price level have on the quantity of goods and services supplied, due to the real balances of money.

Marginal Revenue Product

The additional revenue generated by employing one additional unit of a factor of production, crucial for decision-making in business.