Jenna and Two of Her College Friends Recently Initiated Their

question 23

Multiple Choice

Jenna and two of her college friends recently initiated their own start-up. Jenna's in charge of recruiting people and personnel management. She hasn't had any experience in managing people and wants to establish a clear approach to management. However, she notices that the decisions she makes often vary depending on the people and situations. She realizes that the way she manages programmers needs a different outlook from the way she manages accountants. The most appropriate approach that Jenna could use in this scenario is the ________ approach.

• A) classical
• B) behavioral
• C) management science
• D) comprehensive management analysis
• E) contingency

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Definitions:

Satisfaction Maximized

The point at which an individual achieves the highest level of satisfaction or utility from the consumption of goods or services.

Consumption Change

A variation in the total amount of goods and services that households and individuals are willing and able to consume over a certain period.

MRS

The Marginal Rate of Substitution is the rate at which a consumer is willing to exchange units of one good for units of another good while maintaining the same level of utility.

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.