The Employees at Carlton Motors Have Not Received a Pay

question 5

Multiple Choice

The employees at Carlton Motors have not received a pay hike in one year as the company was incurring losses.Several conflicts have arisen between the management and staff over the lack of competitive salaries.These conflicts are likely to be a result of:

• A) personality clashes.
• B) style differences.
• C) miscommunication.
• D) limited resources.

---

Definitions:

Fixed Inputs

Resources used in the production process whose quantity cannot easily be changed in the short run, such as buildings and machinery.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus (with all other inputs held constant).

Bushels

A unit of volume that is used to measure agricultural commodities like grains and fruits.

Total Product Curve

A graphical representation of the production function, showing how the quantity of output depends on the quantity of the variable input for a given quantity of the fixed input.