Your Executive Vice President Has Asked You to Explain the Basic

question 45

Multiple Choice

Your executive vice president has asked you to explain the basic notion of "skill blocks" within the context of skill-based pay systems design.What two variables would you emphasize?

• A) different skills and depth of each skill
• B) skill certification and criterion
• C) key competencies and training requirements
• D) broad banding and market value

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Definitions:

AFC

Stands for Average Fixed Cost, which is the fixed costs divided by the quantity of output produced, illustrating how fixed costs spread over units decrease as quantity increases.

MR

An abbreviation for Marginal Revenue, which refers to the additional revenue earned by selling one more unit of a good or service.

MC

Stands for Marginal Cost, which is the increase in total cost that arises from producing one additional unit of a good or service.

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others, to make it more attractive to a particular target market.