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Chandra and Jim are managers at XYX Company. They each manage 10 people. Chandra manages primarily by threatening her employees that their pay will be docked if they don't meet their sales quotas set by the company. Jim, on the other hand, manages his employees to meet the sales quotas by treating them with respect and helping them overcome any obstacles in their daily work. According to the text, which manager should be more effective?
Marginal Cost
Incremental expense incurred from the production of one additional unit of a good.
Average Total Cost
The total costs of production divided by the total output, indicating the average cost per unit of output.
Total Cost
The combined total of expenses involved in making goods or services, including costs that do not change and those that do.
Variable Input
Any resource used in production whose quantity can be changed in the short term to increase or decrease output, such as labor or raw materials.
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