Payment of overtime to a worker in order to relax a production constraint could increase the profits of a company.

Name: Payment of overtime to a worker in order to relax a production constraint could increase the profits of a company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If paying overtime to a worker allows a company to relax a production constraint and produce more goods, the additional revenue from selling those goods may exceed the cost of paying for the overtime, resulting in increased profits.

Payment of Overtime to a Worker in Order to Relax