Nathan Exclaimed, "Janet, I Just Heard That Veronica Makes a Salary

question 88

Multiple Choice

Nathan exclaimed, "Janet, I just heard that Veronica makes a salary that is three times greater than mine! But I have a house payment and child care expenses that she does not have!" Janet replied, "Nathan, your financial situation is not at all relevant to what our employer pays you. Your compensation reflects your value to the company. Veronica is the vice president of sales. Do you believe that she contributes three times more than you?" Nathan responded, "At least! We wouldn't have jobs without her! Oh, I see what you mean." Nathan came to understand why Veronica made more than he did because Janet reminded him to think in terms of

• A) the equity theory.
• B) intrinsic rewards.
• C) discrimination.
• D) quality of work life (QWL).
• E) hygiene factors.

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Definitions:

Minimum Cost

The lowest possible expenditure to produce a given quantity of goods or services.

Expansion Path

Curve passing through points of tangency between a firm’s isocost lines and its isoquants.

Long Run

A period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Marginal Cost

The extra financial outlay needed for manufacturing another unit of a product or service.