The Hawthorne effect refers to the observation that
a. an increase in illumination increases productivity.
b. employees crave attention.
c. people perform better when they receive attention.
d. if you are nice to people, they will be productive.
c
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Lightning Semiconductors produces 300,000 hi-tech computer chips per month
Each chip uses a component that Lightning makes in-house. The variable costs to make the component are $1.30 per unit, and the fixed costs are $1,200,000 per month. The company has been approached by a foreign producer who can supply the component, within acceptable quality standards, for $1.00 each. The fixed costs are unavoidable, and Lightning would have no other use for the facilities currently employed in making the component. What would be the effect on operating income if the company decides to outsource? A) There would be no effect on operating income. B) Lightning Semiconductors could save $1,200,000 per month in costs. C) Lightning Semiconductors could save $90,000 per month in costs. D) Lightning Semiconductor's costs would increase by $300,000 per month.
Which of the following statements is true of the Chinese economy?
A) The United Kingdom is China's largest trading partner. B) The Chinese economy has been converted to a communist controlled system from a free-market system. C) The Chinese economy started growing tremendously during the Mao era. D) The Chinese are the biggest global supplier of consumer goods.