In Which of the Following Cases Does Equity Theory Predict

question 114

Multiple Choice

In which of the following cases does equity theory predict that people will be most satisfied in their relationships?

• A) when the perceived rewards of the relationship are equal to the perceived costs of the relationship
• B) when the perceived rewards of the relationship outweigh the perceived costs of the relationship
• C) when the rewards and costs one partner experiences are roughly equal to those of the other partner
• D) when the actual rewards and costs of the relationship exceed the expected rewards and costs of the relationship

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Definitions:

Sole Ownership

Legal status where a single individual or entity retains exclusive ownership and control over property or a business.

Average Revenue

The amount of income generated per unit of sale or average price at which a product is sold.

Demand Curve

An illustrated chart depicting the correlation between a good or service's price and the amount consumers want to buy during a certain period.

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service.