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

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Definitions:

External Attributions

The process of attributing the cause of one's own or others' behavior to external factors, such as the situation or other people, rather than to internal characteristics.

Self-Affirmation Theory

The idea that people respond less defensively to threats to one aspect of themselves if they think about another valued aspect of themselves.

Praise Themselves

The act of expressing approval or admiration for one's own achievements or qualities.

Defensive Responses

Behaviors or emotional reactions aimed at protecting oneself from perceived threats or criticism.