Fresh Air is a large company that repairs residential air conditioners in many homes spread across a state. The company has 50 employees who each have their own repair van. Because the managers of Fresh Air cannot monitor every employee on every repair job, the company sends a satisfaction score card to each customer asking them how pleased they are with the service. If an employee receives a
high satisfaction score, the employee receives a bonus. The bonus policy incentives the employees to do all of the following to earn a high satisfaction score except which one?
A) Offer the customers free services or free up-grades on the repairs.
B) Stop and take a lunch break on the way to the repair job.
C) Perform a good repair.
D) Be courteous to the customer
B) Stop and take a lunch break on the way to the repair job.
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Refer to Table 2.3. Assume that 2010 is the base year. The GDP deflator for 2013 is
A) 67.1. B) 84.5. C) 100.0. D) 118.3.
A situation in where the costs of an action are not fully borne by the two parties engaged in exchange is
A) an externality. B) an internality. C) internal costs. D) a transactions cost.
Choosing to produce at any point within a production possibilities frontier is:
A. inefficient, meaning the society would not be using all its available resources in their best possible uses. B. efficient, meaning the society would be using all its available resources in their best possible uses. C. unobtainable, meaning the society cannot produce that combination of goods. D. efficient but not attainable.
One reason why critics argue that large firms should not be broken up is that in some cases
a. large firms have a concentration of economic power. b. large firms are less-efficient producers. c. many smaller firms would be less-efficient producers. d. there is no economic reason to break up large firms that may have some control over the market.