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A Company Using a Skill-Based Pay System Prices the Job

question 29

Multiple Choice

A company using a skill-based pay system prices the job of lead assembler between $10 and $22 per hour.Survey data showed that the job of assembler averaged $10 per hour and the job of assembly supervisor averaged $22 per hour.The company is using the _____ method of job matching.


Definitions:

Total Utility

The complete fulfillment experienced from the consumption of a specific amount of products or services.

Marginal Utility

The increased happiness or value a buyer experiences by consuming an extra unit of a good or service.

Diminishing Marginal Utility

The principle that as an individual consumes more of a good, the utility (satisfaction or benefit) gained from each additional unit decreases.

Total Utility

The overall satisfaction or value a consumer receives from consuming a particular quantity of a good or service.

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