Use the Following to Answer Questions

question 208

Multiple Choice

Use the following to answer questions:
Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor. The table shows the number of hours of labor necessary to produce one pair of socks or one shirt.
-(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier. If Largetown's labor resource decreases by 40 hours, the opportunity cost of producing shirts:

• A)increases.
• B)decreases.
• C)does not change.
• D)may or may not change depending upon the number of pairs of socks it wishes to produce.

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Definitions:

Business Changes

Transformations or modifications within a business environment, procedures, or strategies aiming for improvement or adaptation to new conditions.

Management Function

The activities that are performed by managers to plan, organize, direct, and control resources to achieve specific organizational goals.

Planning Process

The series of steps taken by individuals or organizations to identify objectives and determine the strategies by which those objectives can be achieved.

Organization Levels

The hierarchical layering of an organization into different levels, typically including top management, middle management, and operational employees.