Equity Theory Is Also Referred to as Distributive Fairness

question 21

True/False

Equity theory is also referred to as distributive fairness.

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Definitions:

Average Costs

Costs per unit of output, calculated by dividing the total cost of production by the number of units produced.

Profit-maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit margin.

Long-run Equilibrium

A state in economics where all factors of production and market forces are balanced, and there are no external pressures inducing change.