27. Suppose the firm currently employs 500 workers at 40 hours per worker per week and that the following relationship holds. MEM 800 MEH 9,000 = = 2 > = =1.5. MPM 400 MPH 6,000 Prove that the firm is not at an equilibrium mix of workers and hours by showing there is a window of opportunity for it to reduce its total cost.

Logan is an employee who processes health insurance forms. initially he was criticized by his supervisor for sloppy work, but thereafter he improved considerably. now he consistently processes his forms without errors and even does more than his fair share of work. however, logan's supervisor has not responded to the extra effort he has put in, giving him no praise or monetary benefits. this leads logan to believe that his supervisor is biased against him. according to the expectancy theory, in this situation, there is a problem in the relationship. a) rewards-personal goals b) performance-awarenessc) performance-rewardd) performance-objectivese) performance-achievement