Question

BusinessWeek, in an article dealing with management, wrote, “When he took over the furniture factory three years ago…[the manager] realized almost immediately that it was throwing away at least $100,000 a year worth of wood scrap. Within a few weeks, he set up a task force of managers and workers to deal with the problem. And within a few months, they reduced the amount of scrap to $7,000 worth [per year].” Was this necessarily an economically efficient move?

Answer 1

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