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When should firm eliminate fringe benefits

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Reference no: EM133562992

Question

1. Suppose a manager were to refuse to provide a fringe benefit that could lower the wages of their workers, but which on balance benefited workers. Why has this manager prevented the firm's average cost curves from being as low as possible?

2. When should a firm eliminate fringe benefits?

3. In the 1990s, "re-engineering" of firms became a management catch phrase, suggesting that from time to time firms need to reinvent themselves from their core business competencies outward. What does the "innovator's dilemma" have to say about re-engineering?

4. In which market structure - perfect competition, monopolistic competition, oligopoly, or monopoly - are individual firms the least likely to be innovative, meaning inclined to create and upgrade their product lines?

Reference no: EM133562992

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