When Management Is Discussing Whether to Lead,lag,or Pay the "Going

question 77

Multiple Choice

When management is discussing whether to lead,lag,or pay the "going rate" for a job,they are deciding:

• A) whether to be egalitarian or elitist.
• B) if they want to have an open or secret compensation system.
• C) how to balance internal equity.
• D) their company's pay policy.

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Definitions:

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit; it's the cost of producing one more unit of a good.

Opportunity Cost

The loss of potential gain from other alternatives when one option is chosen.

Studying Economics

The academic examination of how societies use resources to produce goods and provide services, including the analysis of production, consumption, and distribution.