Nathan exclaimed, "Janet, I just heard that Veronica makes a salary that is three times greater than mine! But I have a house payment and child care expenses that she does not have!" Janet replied, "Nathan, your financial situation is not at all relevant to what our employer pays you. Your compensation reflects your value to the company. Veronica is the vice president of sales. Do you believe that she contributes three times more than you?" Nathan responded, "At least! We wouldn't have jobs without her! Oh, I see what you mean." Nathan came to understand why Veronica made more than he did because Janet reminded him to think in terms of .A. quality of work life (QWL).
B. intrinsic rewards.
C. the equity theory.
D. hygiene factors.
E. discrimination.

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?