When Resolving Conflicts Between External and Internal Equity, There Is

question 82

True/False

When resolving conflicts between external and internal equity, there is a growing sentiment that external comparisons deserve greater weight because organizations are finding it increasingly difficult to ignore market competitive pressures.

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Definitions:

Marginal Social Cost

The cumulative expense to society for creating one more unit of a product or service, encompassing both the personal costs and any external effects.

Private Marginal Cost

Private marginal cost refers to the cost that a company incurs for producing an additional unit of a good or service, excluding any external costs.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service.

Private Cost

The costs that an individual or company incurs directly as a result of its actions, excluding external costs borne by society.