Economic Theory Holds That the Most Profitable Pay Level,all Things

question 98

Multiple Choice

Economic theory holds that the most profitable pay level,all things being equal,would be:

• A) below the market rate.
• B) at the market rate.
• C) above the market rate.
• D) anywhere within (slightly above or slightly below) the market-rate range.
• E) the pay level that is lower than that of the lowest paying organization.

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Definitions:

Global Competition

The dynamic and multifaceted competitive landscape among businesses operating on a worldwide scale.

Free Trade

Worldwide trading conducted without interference through tariffs, quotas, or restrictions, following its inherent course.

Accounting Profits

The net income of a company calculated by subtracting total expenses from total revenues, following accounting rules.