Which of the Following Is a Reason Why Employees Will

question 2

Multiple Choice

Which of the following is a reason why employees will work harder or smarter when gain-sharing is used?

• A) To reduce costs because they receive a portion of the cost savings
• B) To reduce costs because they receive a portion of profits
• C) They are paid for piece work rather than on salary
• D) They all employees receive equal wages
• E) All of these are correct.

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Definitions:

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and equipment maintenance.

Short Run

A period in economics during which some factors of production are fixed, affecting output levels and costing.

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, leading to some degree of market power and price setting.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, thereby factoring in opportunity costs.