If a Piece-Rate Employee Is Overpaid,equity Theory Would Predict That

question 254

Multiple Choice

If a piece-rate employee is overpaid,equity theory would predict that:

• A)there will be no effect
• B)quality will increase
• C)quantity will increase
• D)quality will decrease

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Definitions:

Long Run

A period of time in which all factors of production and costs are variable, and companies can adjust all inputs.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, freely available information, and no barriers to entry or exit.

Long Run

Long run refers to a time period in economics where all inputs or factors of production can be adjusted, allowing an analysis of long-term planning or investment outcomes.

Monopolistic Competitor

A monopolistic competitor is a firm that has many competitors in a market but differentiates its product or service enough to have some control over its price.