-Refer to Table 12

question 44

Multiple Choice

-Refer to Table 12.3. Assume that labor is a major production cost. In year 2, employers would like to hire

• A) more labor because profits are falling.
• B) more labor because profits are rising.
• C) less labor because profits are falling.
• D) less labor because profits are rising.
• E) the same amount of labor as in year 1.

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Definitions:

Single Corporation

A business or company that operates independently without subsidiaries or affiliations with other entities.

Unrelated Businesses

Companies or divisions that operate in distinctly different industries or markets without significant overlap in products, services, or customer bases.

Virtual Organization

A company that primarily operates through electronic communication and does not have a physical central location, relying on the Internet and other technological means to function.

Efficient Bureaucracy

A system of organization that is effectively structured with clear rules and procedures to ensure maximum productivity and efficiency.