Pay rates within a firm seem to show less variation than marginal productivity rate differences. This is because
A. social norms do not allow employers to pay high productivity wages.
B. as much as possible firms try to pay employees the same rate for fairness reasons.
C. firms cannot measure marginal productivity accurately.
D. firms compensate their high producers with non-monetary perks.
Answer: D
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A historical note: The founder of the U.S. Steel Corporation was
a. J. P. Morgan b. John Rockefeller c. Thomas Edison d. Andrew Carnegie e. Herbert Spencer
Explain why the demand for food is inelastic in terms of the substitution effect and diminishing returns
What will be an ideal response?
Hanak Products, a perfectly competitive firm, is experiencing profitability. Given this information, what will Hanak Products do?
a. In the short run, the firm will improve product quality. b. In the long run, the firm will create quality controls. c. In the short run, the firm will reduce its staff size. d. In the long run, the firm will increase production.
Which of the following items plays a role in determining productivity?
a. physical capital b. natural resources c. technological knowledge d. All of the above are correct.