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

question 31

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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 $250 for a klutz and $100 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


Definitions:

Interpersonal Safety

The condition in which an individual feels secure and free from threat or harm in their interactions with others, fostering open communication and trust.

Relatedness Need Category

Pertains to the psychological need to establish and maintain significant relationships with others, feeling connected and belonging within social groups.

Clayton Alderfer

An American psychologist known for developing the ERG theory, which categorizes human needs into existence, relatedness, and growth categories.

Managerial Skills

A set of abilities that includes planning, organizing, leading, and controlling, necessary for effective management.

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