0
What else can I help you with?
What is the impact of changes in the marginal cost of labor on a company's overall production costs?
Changes in the marginal cost of labor can significantly impact a company's overall production costs. When the marginal cost of labor increases, it can lead to higher production costs for the company as they have to spend more on labor. Conversely, if the marginal cost of labor decreases, the company's production costs may decrease as well. This relationship between labor costs and production costs is crucial for companies to consider when making decisions about their workforce and production processes.
What effect does increased labor productivity have on average cost?
Increased labor productivity typically leads to a reduction in average costs for businesses. When workers produce more output per hour, fixed costs are spread over a larger number of units, decreasing the average cost per unit. Additionally, higher productivity can reduce variable costs associated with labor, further contributing to cost savings. Ultimately, this can enhance competitiveness and profitability for firms.
Why might a company move its production factory from Texas to Mexico?
To take advantage of lower labor costs
Can automation in production reduce costs?
Yes, automation in production can significantly reduce costs by increasing efficiency and productivity. Automated systems can operate continuously without breaks, minimizing labor costs and reducing the risk of human error. Additionally, automation can streamline processes, leading to faster production times and lower operational expenses. Over time, these savings can contribute to higher profit margins for businesses.
When a firm produces less output it can reduce?
When a firm produces less output, it can reduce variable costs associated with production, such as raw materials and labor expenses. Additionally, lower output may lead to reduced overhead costs if fixed costs can be spread over fewer units, potentially improving per-unit profitability. However, it is essential to balance the reduction in output with demand to avoid losing market share.
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
Why does the type of product influence where it is produced?
The type of product influences where it is produced due to factors like labor costs, skill requirements, access to raw materials, transportation costs, and market proximity. For example, labor-intensive products may be produced in countries with lower labor costs, while perishable goods might be produced closer to their market to reduce transportation time and costs.
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
