A Sales Manager Pays a Bonus to New Trainees When

question 6

Multiple Choice

A sales manager pays a bonus to new trainees when they develop a good sales prospectus. Later, after the trainees have completed two months of training, the manager pays a bonus only for an actual sale. Which of the following is the manager using to improve the productivity of sales trainees?

• A) shaping
• B) modeling
• C) negative reinforcement
• D) variable-ratio reinforcement

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Definitions:

Long Run

A period of time in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Zero Economic Profit

A situation where total revenues are exactly equal to total costs, indicating no supernormal profit beyond the normal rate of return.

Marginal Cost

The increase in total production cost that comes from making or producing one additional unit of a good.

Excess Capacity

A scenario where a firm's actual production is less than its maximum potential output, often leading to inefficiencies and higher costs.