One of the Fundamental Ways in Which Companies Can Try

question 46

Multiple Choice

One of the fundamental ways in which companies can try directly to increase productivity is by:

• A)increasing the amount of input required to produce a given output
• B)selling smaller quantities of goods to decrease capacity
• C)decreasing the value of the output produced by a given amount of input
• D)consolidating operations to better leverage economies of scale

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Definitions:

Circular-Flow Diagram

A visual representation emphasizing the economic interactions and monetary flow between households and firms within various markets.

Households

Units of individuals living together, typically sharing living expenses, and making joint decisions on consumption and financial matters.

Money

A means of trade employed to simplify the process of buying and selling goods and services.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.