The Term "Hawthorne Effect" Was Used to Explain Some of the Important

question 9

Multiple Choice

The term "Hawthorne Effect" was used to explain some of the important findings of the Hawthorne studies. What does the term mean?

• A) Productivity is determined by efficiency.
• B) Physical conditions of work are more important than social relationships.
• C) When jobs are designed scientifically, performance improves.
• D) People given special attention tend to perform as expected.

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a particular good.

Average Cost

The total cost divided by the number of goods produced, reflecting the cost per unit of output.

Cost Function

A mathematical relationship that describes how production costs change with variations in the quantity of output produced.

Competitive Firm

A company that operates in a market with many buyers and sellers, where no single entity has the power to dictate prices for goods and services.