If TruLite's Basic Production Employee Receives an Hourly Wage of Comp

Multiple Choice

If TruLite's basic production employee receives an hourly wage of Comp = $5.00 + .10 Q where Q is the number of light switches installed per hour, then:

A) $5.00 is the basic incentive to produce.
B) Q is completely dependent on random elements in the production system.
C) $0.10 is the incentive to increase effort.
D) effort is unimportant in this production system.