Which of These Performance-Based Rewards Tends to Create the Lowest

question 45

Multiple Choice

Which of these performance-based rewards tends to create the lowest E-to-P expectancy?

• A) Share options
• B) Individual piece rates
• C) Gainsharing
• D) Individual commissions

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Definitions:

AVC

Average Variable Cost is the total variable costs divided by the quantity of output.

Diminishing Returns

A principle in economics where each additional unit of input results in a progressively smaller increase in output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or industry's output expands.

Output

The amount of something produced by a person, machine, or industry.