If a Firm Is Producing near Current Capacity, They May

question 92

Multiple Choice

If a firm is producing near current capacity, they may consider which reason for outsourcing?

• A) Lower cost
• B) Insufficient capacity
• C) Lack of technology or expertise
• D) Better quality

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Definitions:

Market Wage Rate

The prevailing rate of pay for given work in a specific industry or region, determined by supply and demand for labor.

Profit-Maximizing Quantity

The level of output at which a company can make the highest possible profit, considering its cost structures and market price.

Technological Advance

The process of introducing new technology or improving existing technology which significantly increases efficiency, productivity, or outcomes in various fields.

Labor

The effort by humans to produce goods or provide services in the economy.