A Positive Externality or Spillover Benefit Occurs When

question 143

Multiple Choice

A positive externality or spillover benefit occurs when

• A)product differentiation increases the variety of products available to consumers.
• B)the benefits associated with a product exceed those accruing to people who consume it.
• C)a firm does not bear all of the costs of producing a good or service.
• D)firms earn positive economic profits.

Comprehend various pay plan methodologies and their impact on employee behavior, cost reduction, and productivity improvement.

Grasp the integrative approach to motivation and how it amalgamates different theories of motivation to enhance employee performance.

Understand the concepts of profit-sharing and gain-sharing plans and their differences in distributing organizational earnings to employees.

Explain the reinforcement theory of motivation and the strategies of reinforcement employed in managing employee behaviour.

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Definitions:

Lubricating Film

A thin layer of liquid or substance applied to surfaces to minimize friction and wear, commonly found in mechanical systems, joints, and tissues.

Smooth Surface

A surface with an even and uninterrupted texture, free of noticeable bumps, ridges, or indentations.

Synovial Fluid

A viscous fluid found in the cavities of synovial joints that reduces friction between articular cartilages during movement.

Friction

The resistance that one surface or object encounters when moving over another, often resulting in the generation of heat.