Which of the Following Is (Are) True

question 159

Multiple Choice

Which of the following is (are) true?

• A) A profit-maximizing monopoly firm will select a price and quantity in the inelastic range of its demand curve.
• B) A profit-maximizing monopoly firm will select a price and quantity in the elastic range of its demand curve.
• C) Any firm will maximize profits by producing the quantity of output where MR > MC.
• D) B and C are true.

---

Definitions:

Piecework

A type of incentive system that compensates workers for each unit of output.

Individual Incentive Plans

Compensation strategies designed to reward employees based on their individual performance and achievements.

Commissions

Earnings based on a percentage of the sales made by an employee or agent, as a form of incentive pay.

Pay Equity

The principle of offering equal pay for work of equal value, aiming to eliminate wage discrimination based on gender or other unrelated factors.