The Peter Principle States That in a Hierarchy Such as a Modern

question 45

Multiple Choice

The Peter Principle states that in a hierarchy such as a modern organization,_____.

• A) individuals tend to rise to their levels of incompetence
• B) all people have the right to work and advance on the bases of merit and ability
• C) the amount of recruitment depends on the forecasted human resource needs
• D) the use of temporary help is independent of economic conditions
• E) individuals with disabilities should get increased access to jobs

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Definitions:

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, representing the variable cost per unit of output.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price determination by market forces.

Cost Data

Information related to the expenses involved in producing a good or providing a service, including materials, labor, and overhead.

Market Price

The prevailing price at which a good or service is bought and sold in a competitive marketplace.