In the Comparison of the Pay Systems of Two Well-Known

question 48

Multiple Choice

In the comparison of the pay systems of two well-known Japanese companies Toyota and Toshiba, Toyota _____.

• A)places greater emphasis on external market rates
• B)places lesser emphasis on individual-based merit pay
• C)uses far more levels in its structure
• D)places lesser emphasis on individual-based performance pay

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Definitions:

Marginal Cost

The cost of producing one more unit of a good or service.

Optimum Efficiency

The most favorable condition for the maximal performance and least waste of resources.

Marginal Revenue

The financial gain achieved through the sale of one more unit of a good or service.

Average Total Cost

The cost per unit of output, calculated by dividing the total cost of production by the total quantity of output.