Over a Five-Year Span,the ABC Co

question 91

Multiple Choice

Over a five-year span,the ABC Co.reduced the amount of labor it hired.At the same time,the marginal productivity of labor increased.Which of the following COULD explain this observation?

• A) the law of diminishing marginal returns
• B) labor saving technical change
• C) organizational innovation
• D) All of the above.

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Definitions:

External Environment

Refers to the conditions, entities, events, and factors surrounding an organization that influence its activities and choices.

Context

The background, environment, framework, or circumstances surrounding an event, situation, or statement, which can influence its meaning or interpretation.

Personality Traits

Enduring characteristics that define an individual’s behavior, thinking patterns, and emotional responses.

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices.