If It Is Difficult for a Firm to Attribute the Output

question 124

Multiple Choice

If it is difficult for a firm to attribute the output it produces to a particular worker, then

• A)its employees are likely to form a union.
• B)a commission system of compensation will be preferable to a salary system.
• C)a salary compensation system will be preferable to a commission system.
• D)a piece-rate system of compensation will be preferable to a salary system.

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Definitions:

Per-Bushel Profit

The financial gain earned by selling a bushel (a unit of measure for volume) of agricultural produce, after subtracting the cost of production.

Profits

The financial gain obtained when revenue from sales exceeds costs and expenses associated with operating a business.

Farmer

Someone who works in the agricultural sector, producing living items for nourishment or foundational substances.

Produce

To create or manufacture goods for sale or consumption.