If a Company Wants an Employee to Average About $14

question 5

Multiple Choice

If a company wants an employee to average about $14.00 per hour to produce 60 units per hour,in addition to a base salary of $7.00 per hour,what should be the incentive rate per hour?

• A)$0.117
• B)$8.54
• C)$0.333
• D)$1.25

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Definitions:

Efficient Allocation

The optimal distribution of resources and goods to maximize the net benefit or welfare within an economy.

Allocation Efficient

A distribution of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Mutually Beneficial

A situation or agreement that provides advantages to all parties involved, ensuring that each gains from the interaction.

Transaction Costs

Expenses incurred when buying or selling a good or service, which can include fees, taxes, and other charges beyond the price of the product itself.