Which of the Following Is Not True Regarding the Incentives

question 2

Multiple Choice

Which of the following is not true regarding the incentives different pay structures impose on workers?

• A) Piece rates are an option when individual output is easily measured by firms.
• B) Tournaments can elicit more effort than a time rate.
• C) Worker effort can be a function of the pay structure.
• D) Worker productivity is unrelated to the pay structure.
• E) Profit sharing is a pay structure designed to elicit more effort from workers, but it can suffer from free-riding.

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Definitions:

Customers' Responses

Feedback or reactions of customers to a product, service, or interaction with a business.

Price Lining

A pricing strategy where products or services are grouped into categories based on different price points to target various consumer segments.

Target Pricing

A pricing strategy where the selling price of a product is calculated based on the desired profit margin and the cost to make or buy the product, aiming to ensure competitiveness and affordability.

Product Composition

The combination of different components, materials, or elements that make up a product.