When Employees Are Offered Incentives to Find New Customers,but the Aggregate

question 10

Multiple Choice

When employees are offered incentives to find new customers,but the aggregate economy is so weak (in recession) that the firm loses consumers,then the incentive plan:

• A)suffers from the problem of diminishing reservation utility.
• B)must be adjusted to make employees work harder in difficult times.
• C)suffers from the problems of external risks that employees cannot overcome.
• D)must be adhered to no matter what.

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Definitions:

Lessening Competition

refers to actions or agreements that reduce the level of competition in a market, potentially leading to monopolies or oligopolies.

Horizontal Mergers

Mergers between companies that operate in the same industry or market level, often scrutinized for their potential to reduce competition.

Clayton Act

An antitrust law enacted in the United States to promote competition and prevent monopolies by prohibiting certain actions that could lead to anti-competitive practices.

Genetic Traits

Characteristics determined by genes inherited from parents, influencing an individual's physical and possibly behavioral attributes.