Which Statement Best Describes the Skills of Contract Labour Workers

question 97

Multiple Choice

Which statement best describes the skills of contract labour workers?

• A) Their skills are not directly related to company strategy.
• B) They have firm-specific skills directly related to company strategy.
• C) They have skills that are valuable but not unique.
• D) Their skills are available to all firms.

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Definitions:

Fixed Costs

Expenses that do not change with the amount of goods or services produced, such as rent or salaries.

Marginal Costs

Refers to the cost added by producing one extra item of a product, emphasizing its role in decision making regarding production levels.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Total Fixed Costs

The total of all expenses that stay the same no matter the amount of production or output.