Planning Gap Refers to

question 117

Multiple Choice

planning gap refers to

• A) the difference between projected total costs and realized total revenues.
• B) the difference between projected total costs and net profits.
• C) the difference between marginal revenue and marginal cost.
• D) the percentage point difference between a firm and its next largest competitor in terms of market share.
• E) the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place.

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Definitions:

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the market.

Efficiency Wage

A higher wage paid by employers to increase productivity by attracting better applicants, reducing turnover, and motivating employees.

Marginal Productivity

The additional output that is produced by adding one more unit of a factor of production, holding other factors constant.

Income Distribution

The way in which total income is divided among the population or different groups in an economy.