A Firm Sells Bagels for 50 Cents Each

question 3

Multiple Choice

A firm sells bagels for 50 cents each. With 10 workers the firm produces 100 dozen per hour, and with 12 workers it produces 123 dozen per hour. If the firm has 12 workers at the competitive equilibrium, the workers are earning $____ per hour assuming an average 8-hour shift per worker.

• A) 8.63
• B) 8.23
• C) 7.94
• D) 7.74

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Definitions:

Performance Expectations

The standards or benchmarks set for employees' work output and behavior in the workplace.

Behavioural Self-management

The process of controlling one’s actions or behavior through a self-imposed system of rewards and penalties.

Expectancy Theory

A motivation theory suggesting that individuals are more likely to perform actions if they expect that their actions will lead to desirable outcomes.

Performance-outcome Expectancy

The belief or assumption about the likelihood that one's effort will lead to desired performance outcomes.