Under a piece rate compensation system, in general:
more able workers receive a lower disutility from producing output,
it is easier for more able workers to produce greater quantities of output since they face lower marginal cost curves, and
as a result, more able workers, tend to prefer piece-rate compensation systems - resulting in a self-selection process under which more able workers "self-select" to work under piece-rate compensation systems.
True
False
more able workers receive a lower disutility from producing output,
it is easier for more able workers to produce greater quantities of output since they face lower marginal cost curves, and
as a result, more able workers, tend to prefer piece-rate compensation systems - resulting in a self-selection process under which more able workers "self-select" to work under piece-rate compensation systems.
True
False