This Question Contains Two Parts; Be Sure to Answer Both

question 23

Essay

This question contains two parts; be sure to answer both.
Describe how managers can use the expectancy theory model to help motivate employees.
Second, imagine that you are managing a local real-estate office. Sales of houses, condominiums, and co-ops have been very slow in the last few months, and your staff is feeling demoralized and unmotivated. Analyze the situation in terms of expectancy theory and explain how you might go about improving motivation among the real-estate agents.

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Definitions:

Optimal Prices

The price point that maximizes a firm's profits or achieves the best balance between sales volume and profit margins.

Economies of Scale

The financial benefits that companies gain as a result of their size, production volume, or operational scope, where the cost for each unit of production typically falls as the scale expands.

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different groups of consumers for the same product, based on elasticity of demand.

Monopoly Power

The ability of a single seller to set prices and control the market for a good or service without significant competition.