You Have Two Career Options

question 112

Essay

You have two career options.You can work for someone else for $50,000 a year,or,you can run your own business,with an annual revenue of $100,000,and explicit costs of $40,000 annually.Explain which career option a profit-maximizer would select and why.

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Definitions:

Organization-Level

Pertains to processes, characteristics, or outcomes that are collective in nature and pertain to the entirety of an organization.

Merit Pay

A compensation strategy that rewards employees based on their performance and achievements, rather than their tenure or position.

Profit Sharing

A company's practice of distributing a portion of its profits to its employees, often as a part of their compensation package.

Piece Rate Plan

A compensation system where employees are paid based on the quantity of work they produce or tasks they complete.