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Paying an above-equilibrium wage rate might reduce unit labor costs by?
Wiki User
∙ 11y ago
increasing the supply of labor
Wiki User
∙ 11y ago
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Why might a company move its production factory from Texas to Mexico?
To take advantage of lower labor costs
Why do lower labor costs in the other countries lead to jobs loss in the US?
Lower labor costs enable producers to export inexpensive products to the United States.
Does greater competition lead to greater efficiency?
Yes. Greater competition between firms/countries/... makes the productive capacity rise and will reduce costs. The rise in the productive capacity is mainly achieved by investing in new capital goods (or replacing the old ones). Of course this will reduce the labor needed (so less costs) and will increase efficiency in the end.
Is labor a fixed cost?
Labor costs are fixed with respect to the price of each unit. This is because it takes the same amount of time to produce each identical unit. However, in the bigger picture labor is a variable cost. You cannot be certain how many hours people are going to work until after they do.
What happens to cost inflation when any item of cost increases independently of changes in demand?
Inflation still takes place, you are paying more for a good or service than what the previous cost was. This increase could be due to an increase in labor costs, production costs, materials cost, market saturation exponents or consumer utility.
Why do US companies outsource jobs?
To reduce labor costs
In order to reduce labor costs what might a company do?
some companies have outsourced jobs to Another Country as they can reduce labor costs that way.
What do companies use offshoring to do?
Reduce labor costs
In order to reduce their labor cost what might a company do?
outsource some jobs to another country
How does mass production reduce cost on goods?
mass production mainly reduces the costs of labor..
What is the purpose of ATMs?
To reduce labor costs for the bank and increase availability of banking service in a safe and cost effective method.
Why does us companies outsource jobs?
Cheaper labour, lower tax rates/government incentives
Are American leather apparel companies outsourcing?
After 2000, American companies were moving more of their manufacturing abroad to reduce labor costs.
What was the goal of victory gardens?
to reduce the labor needs on farms (apex 2021) :)
What does a control-oriented approach to the workplace produce?
based on the classic bureaucratic principles of specialization and division of labor. In the control-oriented environment, worker commitment does not flourish. Division of labor can ultimately reduce productivity and increase costs
Costs can either be prime costs or conversion costs but not both?
direct labor
What are the benefits of a good work measurement system?
It helps to reduce labor costs, increase productivity, and improve supervision, planning, scheduling, performance appraisal, and decision making.
