Answer: Option B
Explanation: In simple words, cost cutting refers to the process in which an organisation modifies or re- implement its production and distribution process with the sole object of reducing the cost of production.
By reducing the cost of production an organisation can charge low prices for the product in the market and attract more customers. Although this process sounds straight but it is not easy for the firms orating at small level.
Large firms can easily cut their cost without affecting quality as they have huge scale of operations and they purchase inputs at a high volume which makes them applicable for particular discounts.
Thus, from the above we can conclude that the correct option is B.
I had to look for the options and here is my answer:
What Mcdonald's should do in order to know whether to serve breakfast all day based on economics perspective is firstly, conduct surveys to the customers in order to have a basis on what the customers would think and feel about this new change. And then there should also be a pilot-testing too.
Answer:
Correct option is (e)
Explanation:
There are three levels of distribution intensities: intensive, selective and exclusive. Intensive distribution is when producer covers all possible distribution channels to make the product available. Selective distribution is when the producer selects a few distributors to make the product available particularly to a target customer that the producer has already identified.
Exclusive distribution is done for high end brands where only selective distributors are involved so as to make the product exclusive and not available in abundance. This type of distribution is done for products that are limited edition or unique in nature.
So Anbinh fashion should choose exclusive distribution for its one of a kind designer jewelry.
It’s True that economies of scale are ways that a company can lower the cost per unit by selling more units overall
Answer:
The theory of efficiency wages why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor is due to these reasons:
Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity.
Paying higher wages can reduce a firm's training costs.
Paying higher wages encourages workers to be more productive.
Explanation:
Payment of higher wages increases the efficiency and productivity of the workers.
Also, payment of higher wages gives room for self-motivation among workers. Therefore, much training is not required leading to a reduction in training cost.
