In Organizations Using a Two-Tier Wage System

question 102

Multiple Choice

In organizations using a two-tier wage system:

• A) Temporary employees are paid more than regular employees performing the same job.
• B) New employees are paid less than present employees performing the same job.
• C) Employees are not rewarded for the jobs they regularly perform.
• D) Supervisors are paid more than regular employees.

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Definitions:

Specialization

The process of focusing efforts and resources on a limited number of activities to increase efficiency and productivity.

Fixed Input

A resource in the production process whose quantity cannot easily be changed in the short term, such as buildings and machinery.

Marginal Cost

The increase in cost caused by producing one additional unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.