The Main Purpose of Pay- For- Knowledge Compensation Schemes Is

question 19

Multiple Choice

The main purpose of pay- for- knowledge compensation schemes is

• A)to get around union seniority provisions.
• B)to give workers the incentive to learn a broad range of skills in workplaces which use self- directed work teams.
• C)to simplify payroll administration.
• D)to encourage workers to buy and read books.
• E)to encourage competition between team members.

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Definitions:

Profit-Maximizing Level

The output level at which a firm achieves the highest profit, where marginal revenue equals marginal cost.

Average Total Costs (ATC)

A rephrasing of Average Total Cost, it calculates the per-unit production cost by dividing the total cost by the total quantity of goods produced.

Manufacturing Firm

A business that uses components, parts, or raw materials to make a finished good.

Marginal Cost

The cost of producing one additional unit of a product or service, used in economics to determine the optimum production level.