In a Furniture Factory, One Worker Cuts the Wood According

question 144

Multiple Choice

In a furniture factory, one worker cuts the wood according to the design, another glues the furniture together, and another stains and finishes the furniture. This is an example of

• A) departmentalization.
• B) decentralization.
• C) job specialization.
• D) job rotation.
• E) an automated assembly line.

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Definitions:

Rental Rate

The price paid for the temporary use of a good, service, or property, typically expressed as a fee per time period.

Cost Minimization

The process of reducing expenses to the lowest possible level while still achieving the desired level of output or quality.

Normal Rate Of Return

A rate of return on capital that is just sufficient to keep owners and investors satisfied. For relatively risk-free firms, it should be nearly the same as the interest rate on risk-free government bonds.

Economic Loss

A situation where the cost of making a product is greater than the revenue gained from selling it, resulting in a negative economic outcome.