Use the Following to Answer Question

question 255

Multiple Choice

Use the following to answer question:
Figure: Payoff Matrix for Gehrig and Gabriel
-(Figure: Payoff Matrix for Gehrig and Gabriel) Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Davy Crockett figurines in San Antonio.Both Gehrig and Gabriel have two strategies available to them: to produce 5,000 figurines each month or to produce 7,000 figurines each month.The combined profits of the two are maximized if Gehrig produces _____ figurines and Gabriel produces _____ figurines.

• A)5,000;5,000
• B)7,000;7,000
• C)7,000;5,000
• D)5,000;7,000

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Definitions:

Work Efforts

The amount of physical or mental energy applied by an individual in completing tasks or responsibilities at their job.

External Equity

Refers to an organization’s compensation strategy being competitive with what other employers offer for similar jobs in the market.

Wage Curve

A graphical representation showing the relationship between the wage rate and the level of unemployment in an economy.

Relative Worth

The perceived value or importance of something in comparison to other items or factors.