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The answer here is
$0.10 is the incentive to increase effort.
the first option is not the incentive, it is the base pay ($5.00)
Q is not dependent - it is the independent variable and is the number that is produced
effort is important in this system - the effort determines the pay amount for each employee
So, $0.10 is the incentive to increase effort. is the correct answer.
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Hello again, sorry about the short delay as I was traveling home. I am home now so if you have more you can post them.
The answer to this one is
the employee must accept risk of production variability.
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