Firm that makes car parts wants to adopt pay schemes
Course:- Microeconomics
Reference No.:- EM13700165

Assignment Help
Assignment Help >> Microeconomics

A firm that makes car parts wants to adopt pay schemes that will best motivate its various workers to be productive and they hire you as a consultant.

a. The firm is able to accurately measure the productivity of individual workers who make windshield wipers. What would happen to the productivity of the firm's windshield wiper division if it started paying per windshield wiper? Why?

b. Seats are assembled by teams of workers. The firm can accurately observe the output of each team, but not individual workers within a team. What problems might the firm encounter if output is based on team productivity? How might your answer vary with the size or composition of the teams?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
At the beginning of this year, daily consumption of gasoline in the US amounted to 344 million gallons. It is estimated that for every 10% increase in the price of gasoline, t
Please respond to all of the following prompts: In your opinion, which of the strategies for gaining competitive advantage is most effective, and why? Which is least effecti
Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of c
A high pressure pump at a methan gas (bio fuel) plant in memphis costs $30000 for installation and has an estimated life of 12 years. By the addition of a specialized piece of
Restate the objective function of this problem in such a way that it is technically a maximization problem, with a solution identical to a minimization problem given the con
Are they likely to make economic profits initially? Can they continue to make economic profits in the long term? Why or why not? Discuss. What advice would you give to Alba a
Short-run cost function - Which of the is not an assumption of the linear breakeven model - the breakeven sales volume (in dollars) can be found by multiplying the breakeven
What is meant by the reservation wage What factors determine the reservation wage for an individual How does the concept of the reservation wage help to explain the pattern