Compa-Ratio = _____

question 72

Multiple Choice

Compa-ratio = _____.

• A) total pay divided by the total number of employees
• B) pay level divided by the midpoint of the pay range
• C) total pay divided by the midpoint of the pay range
• D) pay level divided by the total number of employees

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Definitions:

Bounded Rationality

The concept that decision-making is limited by the information, cognitive limitations, and time constraints.

Opportunity Cost

The cost of foregone alternatives when one option is chosen over another, essentially the benefits you could have received by taking an alternative action.

Marginal Benefit

The increased benefit derived from the utilization of one more unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product, focusing on changes in overall cost with slight increases in production.