Excess Capacity Refers to the

question 137

Multiple Choice

Excess capacity refers to the

• A) amount by which actual production falls short of the minimum ATC output.
• B) fact that entry barriers artificially reduce the number of firms in an industry.
• C) differential between price and marginal costs that characterizes monopolistically competitive firms.
• D) fact that most monopolistically competitive firms encounter diseconomies of scale.

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Definitions:

Knowledge-based Pay Plan

A compensation strategy where employees are paid based on their skills, knowledge, and abilities, rather than their job title or position.

Skill Variety

The degree to which a job requires a variety of different activities that involve the use of a number of different skills and talents of the person performing the job.

Motivation

Motivation refers to the processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.

Compressed Workweeks

Are arrangements in which the employee works the required number of hours (typically 40) but does so in fewer than 5 days. For example, a 4-day, 10-hour-a-day work schedule is fairly common.