Promoting from Within Like most fast food restaurants, Chipotle has a high rate of employee turnover. However, for Chipotle, this occurred not only at the entry-level, server jobs, but also at the shift supervisor, store manager, and area manager
levels. Why did their enactment of a policy of exclusively promoting from within the organization reduce their turnover problem in these supervisory roles?
Especially for lower level supervisory jobs, employees did not consider that the pay was worth the work. Under the promote-from-within policy, the probability that any supervisor would be promoted to the next level up is significantly higher. This means that they have an incentive not only to do their job competently but to make themselves noticed for promotion to the next better job. They are working as much for the pay in their next job as they are for the pay in their current job.
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What is rent seeking and how is it related to regulatory capture?
What will be an ideal response?
To sell more units, a monopolist
A) simply moves across its horizontal demand curve to a larger quantity. B) moves down its demand curve to a lower price that will increase quantity demand. C) can continue to receive the same price it always has as long as it has its customers' goodwill. D) must be willing to lower the barriers to entry that have protected it.