Suppose That in Enigma, Ohio, Klutzes Have a Productivity of $1,000

question 19

Multiple Choice

Suppose that in Enigma, Ohio, klutzes have a productivity of $1,000 and kandos have a productivity of $4,000 per month.You can't tell klutzes from kandos by looking at them or asking them, and it is too expensive to monitor individual productivity.Kandos, however, have more patience than klutzes.Listening to an hour of dull lectures is as bad as losing $300 for a klutz and $150 for a kando.There will be a separating equilibrium in which anybody who attends a course of H hours of lectures is paid $4,000 per month and anybody who does not is paid $1,000 per month

• A)for all positive values of H.
• B)if 10 < H < 40.
• C)if 10 < H < 20.
• D)only in the limit as H approaches infinity.
• E)if 8.33 < H < 16.67.

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Definitions:

Lewin's Model

A change management model developed by Kurt Lewin which describes organizational change through three stages: Unfreezing, Changing, and Refreezing.

Economic

Relating to the production, distribution, and consumption of goods and services, as well as the management of money and resources.

Lewin's Change Model

A framework developed by Kurt Lewin which describes organizational change through three stages: Unfreezing, Changing, and Refreezing.

Resisting Forces

Forces or factors that obstruct or slow down the process of organizational change, often arising from individuals' fear of the unknown or loss of control.