Employees Are Sometimes Compensated on the Basis of a Piece

Multiple Choice

Employees are sometimes compensated on the basis of a piece rate-$2.50 for each haircut for example. A piece- rate is likely to be the preferred form of compensation when the worker controls:

A) the quality of the product but not the rate of production.
B) the rate of production but not the quality of the product.
C) neither the rate of production nor the quality of the final product.
D) the rate of production and quality of the final product.