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:

Sight Of Blood

A common phobia or trigger that can cause fear, fainting, or discomfort in some individuals.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in places or situations where escape might be difficult or help unavailable, often leading to avoidance behaviors.

Intense

Something that is extremely strong or severe in degree or magnitude.

Panic Attacks

Sudden episodes of intense fear or anxiety that trigger severe physical reactions when there is no real danger or apparent cause.