When a Consumer Is at the Consumer Optimum

question 342

Multiple Choice

When a consumer is at the consumer optimum

• A) MUa = MUb = MUc = . . . = MUn.
• B) MUa/Pa = MUb/Pb = MUc/Pc = . . . = MUn/Pn = 1.
• C) TUa = TUb = TUc = . . . = TUn.
• D) MUa/Pa = MUb/Pb = MUc/Pc = . . . = MUn/Pn.

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Definitions:

Merit Pay Plan

A compensation strategy where employees are paid based on their performance or achievements, often intended to motivate and reward excellence.

Gain-Sharing Plan

A compensation strategy where employees receive financial benefits from improvements in the company's performance, encouraging productivity and team effort.

Skill-Based Pay

A compensation system that determines salaries based on the skills or knowledge an employee possesses, rather than their job position or title.

Compensation Costs

Compensation costs are the total expenses that an employer spends on an employee's wages, benefits, and other forms of remuneration.