ABC Software, a small software producer, decides to renovate its premises. Inste
ID: 1110960 • Letter: A
Question
ABC Software, a small software producer, decides to renovate its premises. Instead of hiring an outside contractor and tradespeople, the firm decides to use its employees-secretaries, programmers, sales staff, and others-to do most of the work. The firm makes all its employees try painting and carpentry and other tasks needed for the renovation and selects the people with the strongest skills in those areas to take time off from their regular tasks and work on the renovation. Is this strategy a good one? Why or why not? This strategy O A. O B. O C. 0 D. OE. is not a good one because it should be based on opportunity costs. is a good one because it is based on absolute advantage. is a good one because it should be based on renovating skills. is not a good one because it should be based on total output. is a good one because it is based on comparative advantage.Explanation / Answer
Answer :- Option A). is not a good one because it should be based on opportunity costs.
Explanation:- The strategy of ABC Software firm to use (involve) employees, sales staff, programmers etc. for doing the task of rennovating the business premises is not good one because the strategy must be based on the opportunity costs.