Refer to the Information Provided in Figure 7

question 29

Multiple Choice

Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. Figure 7.9
-Refer to Figure 7.9. The firm is currently along isocost CD. If the price of labor is $42, then the price of capital is

• A) $21.
• B) $42.
• C) $63.
• D) $84.

---

Definitions:

Job-Based Pay

A compensation strategy that determines an employee's salary based primarily on the specific job or position they hold.

Competency-Based Pay

Pay based on an employee’s skill level, variety of skills possessed, or increased job knowledge

Hay Profile Method

A job evaluation technique using three factors—knowledge, mental activity, and accountability—to evaluate executive and managerial positions.

Market Pricing

The practice of setting salaries based on the prevailing wage rates for similar positions in the external labor market.