According to the Elimination Principle

question 74

Multiple Choice

According to the elimination principle:

• A) above-normal profits are eliminated by exit.
• B) below-normal profits are eliminated by entry.
• C) there is a uniform rate of profit above the normal level in all competitive industries.
• D) resources are always moving toward an increase in consumer welfare.

Identify how Herzberg's two-factor theory applies to job motivation and distinguishes between hygiene factors and motivators.

Grasp the significance of industrial engineering approaches to job design, emphasizing efficiency and simplification.

Comprehend the role of feedback, autonomy, and task identity in enhancing job satisfaction and productivity through the Job Characteristics Model.

Understand the benefits and applications of self-managing work teams in contemporary job design.

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Definitions:

Operating Economies

Cost advantages that enterprises obtain due to the scaling of production or the efficient allocation of resources.

Managerial Efficiency

A measure of the effectiveness with which managers utilize resources at their disposal to achieve organizational goals.

Purchase Method

An accounting technique used in mergers and acquisitions where the buyer records the assets and liabilities of the acquired company at fair market value.

Book Value

The net value of a company's assets found on its balance sheet, and calculated as total assets minus intangible assets (patents, goodwill) and liabilities.