The Piece-Rate System Is Based on the Assumption That Simply

question 128

True/False

The piece-rate system is based on the assumption that simply paying an employee more money will increase that person's motivation.

---

Definitions:

Profit Maximizing

The strategy or method of adapting manufacturing and sales processes to secure the maximum achievable profit.

Firm Interest

The commercial or financial concerns and objectives of a business organization.

Socially Optimal

A condition or level of operation where social welfare is maximized, considering all costs and benefits to society.

Marginal Cost

The rise in total expenses incurred from the production of an extra unit of a product or service.