A Pay Policy Line

question 86

Multiple Choice

A pay policy line:

• A) shows the mathematical relationship between the minimum pay and the maximum pay in an organization.
• B) can be generated using a statistical procedure called regression analysis.
• C) requires market-pay-rate data on all jobs in the organization.
• D) can be used to estimate the minimum pay level for a given job evaluation.
• E) reflects the pay structure in the market, which always matches rates in the organization.

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Definitions:

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product or service, regardless of demand differences.

Marginal Revenue

The additional income that an organization receives from selling one more unit of a good or service.

Output

The total amount of goods or services produced by a company, industry, or economy over a certain period.

Elastic Range

The segment of a demand curve where any change in price leads to a more than proportionate change in the quantity demanded.