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A Firm Is Considering Two Countries to Outsource Its Call

question 52

Essay

A firm is considering two countries to outsource its call centre.Currently the weighted factor method has given a score of 120 to the first country and 110 to the second country.If the second country wants to improve its score in the labour rating (weight = 1.5),how much must it increases its labour rating by to have a score greater than or equal to country 1?


Definitions:

Profit-maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit.

Payment to Labor

Compensation provided to workers for their labor, which can be in the form of wages, salaries, or benefits, for their contribution to production processes.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, holding all other inputs constant.

Marginal Product

The increase in output that results from employing one more unit of a specific input, while holding other inputs constant.

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