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Explain How a Firm Could Increase Profits by Hiring More

question 14

Essay

Explain how a firm could increase profits by hiring more labor and, conversely, how it could increase profits by laying off labor.


Definitions:

Just-In-Time (JIT)

A management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs and increase efficiency.

Production Capacity

The maximum output that a business can produce in a given period with the available resources.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.

Unnecessary Steps

Processes or actions within a workflow that do not add value to the product or service and could be eliminated to improve efficiency.

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