Monica feels she is paid appropriately for her entry-level position because her friend Trisha makes the same amount at her company. This demonstrates the idea of

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Monica is using the equity theory, which suggests that individuals compare their inputs and outcomes (such as effort and pay) to those of others in order to determine whether they are being treated fairly. Monica believes that she is being treated fairly because she and her friend Trisha are being paid the same amount for the same level of work. This is an example of equity, or the perception that one's inputs and outcomes are proportional to those of others.

Monica Feels She Is Paid Appropriately for Her Entry-Level Position