When a Firm Has Excess Capacity, a Price That Covers

question 3

True/False

When a firm has excess capacity, a price that covers the incremental costs incurred because of the job will contribute toward covering the company's fixed cost and profit.

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Definitions:

Job Enrichment

A job design technique that is aimed at motivating employees by modifying work to improve its quality and the employees' autonomy.

Skill Variety

The degree to which a job requires a range of different activities and skills to carry out the work involved, contributing to worker satisfaction.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work, which impacts an employee's sense of accomplishment and motivation.

Job Feedback

Information given to employees about their performance, intended to reinforce strengths or identify and correct weaknesses.