The Managers at Microfab Meet and Realize That They Have

question 81

Multiple Choice

The managers at Microfab meet and realize that they have huge costs associated with training new employees, difficulty finding someone who can take the place of lost employees, and lower productivity than they would prefer from each employee. What can they do to address this issue?

• A) decrease the amount of control managers have over employees
• B) decrease the number of tasks each employee performs
• C) increase the number of tasks each employee performs
• D) increase the number of employees under each manger
• E) train the new employees themselves

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Definitions:

Maximizing Utility

The process by which individuals or consumers adjust their consumption of goods and services to achieve the highest level of satisfaction or utility.

Consumer Surplus

The difference between the maximum amount a person is willing to pay for a good and its current market price.

Law of Diminishing Marginal Utility

An economic principle stating that as consumption of a good or service increases, the marginal utility derived from each additional unit decreases.

Marginal Utility

Marginal Utility is the added satisfaction or benefit a consumer receives from consuming one more unit of a good or service.