Some Firms Use Large Amounts of Capital and Small Amounts

question 45

Multiple Choice

Some firms use large amounts of capital and small amounts of labour, while others use small amounts of capital and large amounts of labour to

• A)use surpluses of labour and capital and eliminate unemployment of these resources.
• B)use the best available technology.
• C)use the resources that are most readily available.
• D)maximize profit.
• E)maximize production.

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Definitions:

Subunit Power

The extent of influence that a department or division within an organization has over decisions and resource allocations.

Resources

Assets, materials, or valuable items that individuals or organizations possess and can utilize to achieve specific goals or tasks.

Organizational Departments

Subdivisions within an organization, each with specific roles, responsibilities, and objectives, organized to streamline operations and achieve the organization's goals.

Variable Affects

Refers to influences that can cause changes in outcomes or conditions; these may vary depending on different factors or circumstances.