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Controlling the Cost of Labor in Services Involves Quick Response

question 97

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Controlling the cost of labor in services involves quick response to consumer demand, on-call labor for unexpected demand, flexibility of labor for reallocation, and flexibility of hours or rate of output of individual workers.


Definitions:

Central Planners

Individuals or groups responsible for coordinating economic activities and decisions in a centrally planned economy.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices are determined in a free price system.

Production Goals

Targets set by a company regarding the quantity and quality of products to be produced within a certain timeframe.

Limited Resources

The finite availability of resources such as time, money, and materials, which constrains production, consumption, and allocation decisions.

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