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A Firm Is Considering Adding a Second Secretary to Answer

question 20

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A firm is considering adding a second secretary to answer phone calls and make appointments.The cost of the secretary will be $10/hour and she will work 200 hours each month.If each new client adds $400 of profit to the firm,how many clients must the secretary arrange for the firm to break even?


Definitions:

Rivals

Competitors within the same industry or market vying for the same customer base.

Concentration Ratios

A measure used to determine the level of competition within an industry by analyzing the market share of the largest firms within that market.

Industry Sales

The total revenue generated within a specific industry from the sale of goods and services.

Top Firms

Leading companies in a particular industry, market, or sector based on metrics such as revenue, market share, or innovation.

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