Scott is a manager at a pool cleaning business. He has hired 10 workers to clean pools for him and is considering what type of payment scheme he should set up for his workers. He can pay each of his workers $10 per hour to clean pools, or he can pay his
workers $20 for each pool a worker cleans. (It takes 2 hours, on average, for an employee to clean a pool thoroughly.) If Scott wants to maximize the number of pools his workers clean in one day, which payment scheme should he use? Explain.
What will be an ideal response?
If Scott wants to maximize the number of pools his workers clean in one day, he should pay them $20 for each pool so that workers also will have an incentive to clean as many pools as possible. However, if the workers are rushing through cleaning pools, it is likely that the pools will not be cleaned as thoroughly.
You might also like to view...
In the United States, how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?
What will be an ideal response?
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C