You Graduated from College Two Years Ago and Began Working

question 86

Multiple Choice

You graduated from college two years ago and began working at Hampstead Electronics.You have received good performance evaluations and a raise.You just found out that a recent college graduate with no experience has been hired at a higher salary than you are now making. According to equity theory,you can be predicted to:

• A)acknowledge that the new person hired is worth more.
• B)work harder.
• C)not work so hard.
• D)do your work without any change.

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Definitions:

Marginal Revenue

The added revenue obtained from trading an additional unit of a product or service.

Decreasing Cost Industry

An industry where an increase in production leads to a decrease in the average cost of producing each unit, often due to economies of scale.

Marginal Cost

Marginal cost refers to the increase in total cost that arises from producing one additional unit of a good or service.

Block Pricing

A pricing strategy where different quantities of a product or service are sold at different prices, usually implying that larger quantities are sold at a lower per-unit price.