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As firm size Blank______, managerial salaries tend to Blank______.Multiple choice question.decrease; increaseincreases; decreaseincreases; increase

Question

As firm size Blank______, managerial salaries tend to Blank______.Multiple choice question.decrease; increaseincreases; decreaseincreases; increase

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Solution

The correct answer is "increases; increase". As the size of a firm increases, the complexity and responsibilities of managerial roles also increase. Therefore, to compensate for the increased workload and responsibilities, managerial salaries also tend to increase.

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