What Is the Most Likely Reason That Firms Are Implementing

question 17

Multiple Choice

What is the most likely reason that firms are implementing group incentive plans?

• A) stricter regulations regarding team bonus plans
• B) heavy reliance on teams to manage work
• C) expected loss of older workers
• D) rising cost of health benefits

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus.

Production Function

An equation, graph, or table that describes the maximum amount of output a firm can produce from a given set of inputs.

Variable Factor

In economics, an input in the production process that can be adjusted in the short run to change the quantity of output.

Fixed Factors

Inputs in the production process that cannot be easily increased or decreased in a short period of time.