Mr. Jones pays his employees by the hour. He believes they purposely work slowly to maximize their personal satisfaction. What can he do to provide them with a stronger incentive to work efficiently?
Mr. Jones needs to do something that would change worker incentives. One option would be to link pay to output or to the firm's profitability. He could pay bonuses for increased output, or he might tie all employee income to the profit the firm earns. This would make the employees residual claimants, giving them a stake in the firm's well-being.
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Given that the firm only chooses to sell the no-name brand, how should it price its product?
a. Price low, sell to both users b. Price high, sell only to the professional chefs c. Price low, sell only to the professional chefs d. Price high, sell only to the home users
Refer to the given data. If Alpha was producing at alternative B and Omega was at alternative C before trade, the gain from specialization and trade would be:
A. 30 tons of wheat.
B. 5 tons of steel.
C. 5 tons of steel and 15 tons of wheat.
D. 15 tons of steel and 5 tons of wheat.