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Part of a worker’s pay on an automobile assembly line is based on the number of cars in a pay period that come off the worker’s line and pass inspection. The remaining portion of the worker’s pay is an hourly wage that is fixed and only depends on the number of hours the employee works.
How does this incentive plan align the employee’s incentives with the firm’s? Is the inspection necessary?
What would you recommend to management if they asked you if they should inspect each individual employee’s work and pay based on the individual’s work rather than whether the car passed the final inspection (that is, what are the benefits and costs of paying, for instance, the windshield installer for the number of correctly installed windshields).
What decision making ability should the worker have in order to maximize the effectiveness of the incentive plans?
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An increase in capital per worker will: Technological progress will: If technology advances, then:
q1. identify the flaw in this analysis the demand for bread will fall if more americans go on a low diet. the cost of
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Mel runs a business that sells earrings over the internet. Every year, she buys one computer for $1000, which is used exclusively for this business, and which has no resale value at the end of the year. A set of earrings costs her $6, including the c..
You graduate from UAlbany and receive a job offer that includes a "retention" or "stay" bonus. At the end of 3 years the employer will pay you $50,000 to offset your tuition. a. What is the value of this assuming you use 3% to discount the future? b...
Assume which two people, Michelle also James every live alone in an isolated region. They every have the same resources available also they grow potatoes also raise chickens.
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