An increase in quasi-fixed costs would probably lead to a(n)________ in the number of employees hired and a(n)________ in the number of overtime hours worked.
A) increase; decrease
B) increase; increase
C) decrease; decrease
D) decrease; increase

Question

Quizplus · Accepted Answer

Quasi-fixed costs, such as training or hiring costs, do not change with small changes in production levels but can affect employment decisions. An increase in these costs makes hiring new employees more expensive, likely leading to fewer hires and more reliance on existing employees, often through increased overtime.

An Increase in Quasi-Fixed Costs Would Probably Lead to A(n)________