Assume You Are in the Business of Producing and Selling

question 30

Multiple Choice

Assume you are in the business of producing and selling t-shirts. If you could produce more t-shirts with the same input what would happen to your productivity and profits assuming the price of your t-shirts remains the same?

• A) Increase in productivity, decrease in profits
• B) Increase in productivity, increase in profits
• C) Decrease in productivity, decrease in profits
• D) Decrease in productivity, increase in profits

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Definitions:

Flexible Schedules

Work arrangements allowing employees varying arrival and departure times, as well as the possibility of working from different locations.

Human Capital

The abilities, expertise, and experiences held by a person or group, considered in relation to their worth for an organization.

Surplus

An excess of resources or assets beyond what is needed, often referring to budgetary or inventory contexts.

External Supply

The provision of goods or services from outside the organization, often through contracts or purchases from external sources.