Mary Jane Applied for One of Two Openings for an Executive

question 182

Multiple Choice

Mary Jane applied for one of two openings for an executive secretary position at QRP,Inc.The job posting showed a starting salary range of $70,000 to $80,000 depending on skills,education,and experience.The job called for a minimum of five years of experience,a bachelor's degree in business,accounting,or communications,the ability to use a wide variety of office equipment,and the ability to use the entire Microsoft Office Suite.She was employed in this exact same job for a different company for seven years,she had an MBA,and taught the entire Microsoft Office Suite at a college in addition to using it on the job.She used Publisher to create the company newsletter.Austin applied for the same job as Mary Jane.He had a bachelor's degree in accounting,five years of experience as an administrative assistant,used the entire Microsoft Office Suite on the job but never taught it and did not create a company newsletter.The company hired Mary Jane at $72,000 per year and Austin at $77,000.Mary Jane was outraged when she discovered the discrepancy in their pay.Which of the following theories addresses the reasons for Mary Jane's reaction?

• A) Theory Z
• B) Theory X
• C) Reinforcement theory
• D) Equity theory

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Definitions:

Economies of Scale

The cost advantage that arises with increased output of a product due to spreading fixed costs over more units of production.

Minimum Efficient Scale

The smallest level of production a firm can achieve while still taking full advantage of economies of scale regarding costs per unit.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in average costs with increased output.