A Soft Drink Factory Employs Seven Workers and Produces 500

question 112

Multiple Choice

A soft drink factory employs seven workers and produces 500 bottles of soda a day. When the company reduces the workforce to six workers output decreases to 450 bottles a day. The seventh worker:

• A)had a marginal product of 50 bottles of soda.
• B)caused average product to fall.
• C)had a lower marginal product than the sixth worker.
• D)All of these are correct.

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Definitions:

Procedural Fairness

Refers to the perceived fairness of the processes used to make decisions within organizations.

Distributive Fairness

The perceived fairness of the outcomes received, including resources and rewards, within an organization or social system.

Emotional Contagion

The phenomenon where emotions and behaviors can be transferred from one person to another, often unconsciously, leading to shared feelings or mimics in groups.

Tendency

An inclination towards a particular characteristic or type of behavior.