Bonuses

question 15

Multiple Choice

Bonuses

• A)are used to offset a low salary
• B)are given in large firms more than small firms
• C)are necessary to keep employees satisfied
• D)do not exist in government offices
• E)none of the above

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Definitions:

MR

Marginal Revenue, the additional income received from selling one more unit of a product or service.

Socially Efficient Quantity

The level of production or consumption of a good or service that results in the optimal allocation of resources, considering both private and social costs and benefits.

Profit-Maximizing Quantity

The level of production at which a company achieves its highest profit, where marginal cost equals marginal revenue.

Average Total Cost

The total cost divided by the quantity of output produced; it is the sum of average fixed costs and average variable costs.