In Which of the Following Situations Would the Use of Temporary

question 51

Multiple Choice

In which of the following situations would the use of temporary workers be most appropriate?

• A) A company that has a low rate of turnover among its regular employees.
• B) An employer who has received a long-term contract from the Federal government for oceanic research.
• C) A tax preparation company that mostly handles individual clients and has few business clients.
• D) A start-up company with a competitive strategy of continuing expert customer service.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a good or service, which varies depending on the level of production.

Profit

The financial gain accrued from a business activity when total revenues exceed total expenses.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Long Run

An economic period in which all inputs, including capital, can be adjusted, allowing firms to fully adapt to market changes.