Asked by Sheana Serena on Jul 02, 2024
A firm wishes to shut down an office and fire 100 employees.The company will save $3000 per month per employee.It is estimated that each employee contributes $4,100 to the company.The firm rents office space for this group of employees at $1500.What should the company do?
A) Fire the employees and save $1500 on rent
B) Not fire the employees keeping them generates a profit of $1100 per employee
C) Not fire the employees since keeping them generates a profit of $1085 per employee
D) None of the above
Office Space
Refers to the premises where commercial and administrative work is conducted, often leased or bought by businesses.
Employees
Individuals hired by a business or organization to perform specific duties in exchange for compensation.
Rent
A periodic fee paid for the use of property or land.
- Identify and discuss the principle of opportunity cost in the context of making informed decisions.
- Comprehend the function of opportunity costs in the computation of economic gains.
Learning Objectives
- Identify and discuss the principle of opportunity cost in the context of making informed decisions.
- Comprehend the function of opportunity costs in the computation of economic gains.