The General Rule for Allocating a Productive Resource Efficiently Across

question 45

Multiple Choice

The general rule for allocating a productive resource efficiently across different production activities of the same product, like fishing boats in the text case example, is to choose the allocation for which the

• A)average product of the resource is the same in every activity.
• B)marginal product of the resource is the same in every activity.
• C)total product of the resource is the same in every activity.
• D)average product is equal to the marginal product in every activity.

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Definitions:

Interactional Justice

A concept in organizational behavior that concerns the quality of the interpersonal treatment people receive when organizational procedures are implemented.

Interpersonal Treatment

The manner in which individuals interact with and behave towards one another in a social or professional setting.

Downsizing Decision

An organizational strategy to reduce workforce size, operational costs, and complexity by eliminating positions or departments.

Outsourcing

The practice of contracting out certain business functions or processes to a third-party provider.