Refer to the Following Scenario to Answer the Questions That

question 26

Multiple Choice

Refer to the following scenario to answer the questions that follow.
Five fishermen live in a village and have no other employment or income-earning possibilities besides fishing. They each own a boat that is suitable for fishing but does not have any resale value. Fish are worth $5 per pound, and the marginal cost of operating the boat is $500 per month. They all fish a river next to the village. According to the following schedule, they have determined that, when there are more of them out on the river fishing, they each catch fewer fish per month.

-How many fishermen will choose to operate their boats?

• A) 1
• B) 2
• C) 3
• D) 4
• E) 5

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Definitions:

Laissez-Faire Leader

A leadership style characterized by minimal supervision, where followers are given a high degree of freedom in their decision-making processes.

Situational Leadership Model

A leadership theory proposing that the most effective leadership style varies according to the situation and the maturity level of the followers.

Delegating Leader

A leader who assigns responsibility and authority to others, enabling them to make decisions.

Transformation Approach

A leadership perspective focusing on the connections and interactions between leaders and followers to raise each other to higher levels of motivation and morality.