The Marginal Productivity Principle Says That a Profit-Maximizing Firm Should

question 7

Multiple Choice

The marginal productivity principle says that a profit-maximizing firm should

• A) hire capital until its marginal product is zero.
• B) hire labor until another worker costs more to hire than he can earn for the firm.
• C) hire the quantities of capital and of labor at which their marginal products are equal.
• D) hire capital until its marginal product is negative.

Grasp the strategies of job design, including job enrichment and job rotation, and their impact on employee engagement.

Identify the characteristics of individuals who respond positively to enriched jobs.

Comprehend Hackman and Oldham's Job Characteristics Model and its relation to job satisfaction and performance.

Define core job characteristics and their significance in job design.

---

Definitions:

Hypnotized

An altered state of consciousness characterized by intense focus and greater receptiveness to suggestions, typically used for therapeutic ends.

Confidence

A belief in oneself and one's ability to succeed or handle various situations effectively.

Atmospherics

The use of space, lighting, music, and scent by retailers and marketers to influence consumers' mood, behavior, and spending in a commercial environment.

Store's Personality

Refers to the unique set of characteristics, attributes, and traits that differentiate a retail store, making it appealing to certain customers.