Which of the Following Is True of Reference Power

question 138

Multiple Choice

Which of the following is true of reference power?

• A) It is only maintained by protecting one's credibility by not overstepping boundaries and pretending to have expertise that really isn't there.
• B) It is only based on serving others and helping them use their talents fully so that organizations benefit society.
• C) It never allows others to exercise power and achieve influence within an organization.
• D) It can be developed and maintained through good interpersonal relationships that encourage the admiration and respect of others.
• E) It never allows managers to act in a unilateral fashion.

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Definitions:

Marginal Resource Cost

The increase in total cost incurred by employing one more unit of a resource, such as labor or capital.

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including fixed and variable costs.

Input

Resources (such as labor, materials, and capital) used in the production process to create goods or services.

Marginal Resource Cost

The additional cost incurred by a firm for using one more unit of input, like labor or raw materials.