Fred Decides to Hire Some Additional Mechanics to Work in His

question 44

Multiple Choice

Fred decides to hire some additional mechanics to work in his expanded automotive business.The going wage is $16 per hour.Efficiency-wage theory suggests that Fred should offer:

• A)very little as the automotive industry is a sunset industry
• B)the minimum wage which is $14 per hour, since some mechanics would be willing to work at that level
• C)more than $16 per hour, so as to attract a better pool of applicants
• D)enough to attract the number of applicants necessary to fill the jobs available

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Definitions:

Spider Web Pricing

Spider Web Pricing is a pricing strategy that adjusts frequently in response to market demands and competitor prices, similar to a spider adjusting its web.

FOB Origin Pricing

A pricing strategy where the buyer takes on responsibility for the goods once they leave the seller’s premises, including paying for shipping and handling.

Mode of Transportation Pricing

The cost structure associated with different modes of transport, factoring in distance, speed, volume, and type of goods.

Vehicle

In marketing, a vehicle refers to the medium or channel used to transmit an advertising message to its intended audience, such as television, radio, or online platforms.