Final answer:
XYZ Corp needs to carefully project future revenues by avoiding overestimation and underestimation of productivity increases while considering external factors and current market conditions. Option a and b.
Step-by-step explanation:
When XYZ Corp projects an increase in revenue based on an increase in productivity, it needs to avoid certain pitfalls in its projection. The first is overestimating the increase in productivity (a), which can lead to unrealistic projections and potentially unmet investor expectations. Secondly, XYZ Corp must avoid underestimating the increase in productivity(b), as this may result in the corporation failing to capitalize on potential opportunities. Thirdly, it should not ignore external factors that could impact revenue, such as market trends, economic conditions, and industry competition. Lastly, XYZ Corp should consider current market conditions to ensure that its projections align with the economic environment. If productivity has been rising at a regular rate, XYZ Corp may decide to set wage increases accordingly; however, they must be cautious about unexpected changes in productivity that can influence the natural rate of unemployment and overall revenue.