At What Level of Effort Does Performance Based Pay in the Form

question 17

Multiple Choice

At what level of effort does performance based pay in the form of salary-plus-commission yield the maximum payoff to an employee?

• A)40 hours per week
• B)As much as the employee can possible work
• C)When the slope of a line tangent to the cost curve is one half of the slope of the salary curve
• D)There is no effort level at which an employee can maximize their payoff given a salary-plus-commission pay construct
• E)When personal marginal benefit equals personal marginal cost

---

Definitions:

Creativity

The ability to think about something in novel and unusual ways and to devise unconventional solutions to problems.

Big Five Model

A personality framework identifying five core traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

A personality trait characterized by outgoingness, high energy, and positive emotions; individuals tend to seek stimulation and enjoy social interactions.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.