A Manufacturing Company Hit by a Slump in Demand Is

question 96

Multiple Choice

A manufacturing company hit by a slump in demand is experiencing a labor surplus.The company expects the market to improve in six months,and it does not want to lay off any of its employees.Which of the following strategies is an equitable way to handle this issue that results in spreading the burden more fairly?

• A) Demotions
• B) Outsourcing
• C) Reduced work hours
• D) Overtime
• E) Employing temporary workers

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Definitions:

Identical Firms

Companies that offer the same products or services and operate in the same market with similar strategies and resources.

Cost Data

Information regarding the expenses incurred in the production, operation, or acquisition of goods and services.

MC Curve

Represents the marginal cost curve, which shows the cost of producing an additional unit of a good or service.

Technological Advance

The development of new technologies and improvement of existing technologies to increase productivity or address new challenges.