Group Incentives Is Least Likely to Work If _____

question 59

Multiple Choice

Group incentives is least likely to work if _____.

• A) most of the members are free riders
• B) cooperation is necessary to do the job
• C) the reward is distributed equally among the members
• D) the reward involved is in the form of cash

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Definitions:

Perfect Mobility

A theoretical condition where factors of production, such as labor and capital, can be freely moved from one use to another without costs or barriers.

Marginal Revenue

The revenue increment achieved by selling an extra unit of a product or service.

Marginal Cost

The expense associated with manufacturing an additional unit of a product or service.

Average Total Cost

The sum of all production expenses (both constant and fluctuating) divided by the overall output quantity.