_____ Exists When a Person's Own Outcome-Input Ratio Is Perceived

question 30

Multiple Choice

_____ exists when a person's own outcome-input ratio is perceived to be less than that of a referent.

• A) Absolute equity
• B) Instrumental equity
• C) Terminal equity
• D) Underpayment inequity
• E) Overpayment inequity

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, and economic agents have fully adjusted to any economic changes, leaving no incentives for further adjustments.

Minimum Average Cost

The lowest point on the average cost curve, signifying the most efficient scale of operation for a firm.

Decreasing Cost

Decreasing cost refers to a situation where costs fall as the scale of production increases, often due to efficiencies or benefits gained from economies of scale.

Differentiated Product

A product that has unique characteristics compared to other products in the market, often highlighted through branding and quality to compete on factors other than price.