What Three Factors Combine to Create the Situation in Leadership

question 98

Essay

What three factors combine to create the situation in leadership contingency theory,and what combination of the three best matches a low-LPC style?

---

Definitions:

Derived Demand

Derived demand refers to the demand for a good or service that arises from the demand for another good or service it produces or contributes to.

Labor Service

The work performed by employees for employers, contributing to the production of goods or the provision of services in exchange for wages.

MRP = MRC Rule

The principle that to maximize profit (or minimize losses), a firm should employ the quantity of a resource at which its marginal revenue product (MRP) is equal to its marginal resource cost (MRC), the latter being the wage rate in a purely competitive labor market.

Profit-maximizing Firm

A company that adjusts its production and sales levels to achieve the highest possible profit based on its cost structure and market price.