Alana,the Owner of a Small Dress-Making Establishment Called Mantua Fab,decides

question 75

Multiple Choice

Alana,the owner of a small dress-making establishment called Mantua Fab,decides to hire assistants for design,sewing,and other tailoring jobs.Alana signs a contract with Minerva Inc.,a company which employs dress designers and tailors for an annual fee.She makes an arrangement to pay the employees of Minerva both a fixed amount and an annual fee for finishing Mantua's projects of dress-making for a period of two years.This is an example of:

• A) outsourcing.
• B) employee leasing.
• C) networking.
• D) employee referral.

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Definitions:

Total Cost

The complete cost of production or operation, including fixed and variable costs, associated with a business activity or process.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Industry Domination

A scenario where one or a few companies control a significant share of the market, often leading to a reduction in competition.

Economies of Scale

The cost advantage achieved when production becomes efficient, leading to a decrease in the average costs per unit as output increases.