If a Company Is Able to Offer a Higher Quality

question 6

Multiple Choice

If a company is able to offer a higher quality product at a lower price than its competition because of a well designed employee selection process and incentive system,their

• A)competitive advantage will decrease
• B)customer value will increase
• C)corporate sustainability will decrease
• D)vulnerability to lawsuits will increase
• E)financial performance will decrease

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Definitions:

Substitution Effect

The substitution effect describes the change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Higher Wage

The increased remuneration or salary received by an employee, often as a result of promotions, market adjustments, or successful salary negotiations.

Labor for Leisure

The trade-off between working hours for income and spending time on relaxation or enjoyment activities.

Hourly Wage Rate

The hourly wage rate is the amount of money paid to an employee for one hour of work, often used to calculate overall earnings in jobs that compensate workers on an hourly basis.