Vaughn Manufacturing Develops and Manufactures Microphone Components

question 26

Multiple Choice

Vaughn Manufacturing develops and manufactures microphone components. Over the last few years, the firm has made numerous HR changes with the goal of becoming a high-performance work system. Vaughn employees work in self-directed teams, participate in regular training programs, and receive frequent performance appraisals. Vaughn executives want to make sure that the firm's new methods are not perceived as sham unions. Which of the following would most likely help Vaughn accomplish this goal?

• A)allowing employee teams to bargain over wages
• B)increasing committee supervision by managers
• C)electing employee representatives to committees
• D)involving employees in program formation

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Definitions:

Economies of Scale

Refers to the cost advantage experienced by firms when they increase their level of production. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced.

Oligopolistic

Pertaining to an oligopoly, a market structure with a few firms dominating the industry, leading to limited competition.

Herfindahl-Hirschman Index

A measure of market concentration to assess the level of competition within an industry.

Herfindahl-Hirschman Index

A measure of market concentration, calculated by summing the squares of the market shares of all firms in the industry.