Managers at Top-Tech Inc

question 72

Multiple Choice

Managers at Top-Tech Inc.determined that there would be no end-of-year bonuses due to predicted leveling of sales.Perry,a department manager,let his staff know that even high-performing employees would not get bonuses this year.This change limits Perry's _____ power.

• A) legitimate
• B) reward
• C) coercive
• D) referent
• E) expert

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Definitions:

Marginal Cost

The rise in expense associated with the production of one more unit of a product or service.

P > MC

A condition where the price (P) of a good is greater than the marginal cost (MC) of producing it, typically indicating the potential for profit.

MR

Marginal Revenue, the additional income received from selling one more unit of a product or service.

Socially Efficient Quantity

The level of production or consumption of a good or service that results in the optimal allocation of resources, considering both private and social costs and benefits.