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# If TruLites basic production employee receives an hourly wage

Customer Question
If TruLite's basic production employee...
If TruLite's basic production employee receives an hourly wage of Comp = \$5.00 + .10 Q in which Q is the number of light switches installed per hour, then
Submitted: 5 years ago.Category: General
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2/10/2012
Expert: NY Eng, Engineer replied 5 years ago
NY Eng, Engineer
Category: General
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Experience: Engineer for Fortune 500 chemicals company for 11 years; wide range of interests and knowledge.
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Hello, my name isXXXXX question appears to have gotten cut off, could you repaste the entire question? Thank you.
Customer reply replied 5 years ago
If TruLite's basic production employee receives an hourly wage of Comp = \$5.00 + .10 Q in which Q is the number of light switches installed per hour, then: Answer
 \$5.00 is the basic incentive to produce. Q is completely dependent on random elements in the production system. \$0.10 is the incentive to increase effort. effort is unimportant in this production system.
Expert: Mr. Gregory White, Teacher replied 5 years ago
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Experience: M.A., M.S. Education / Educational Administration
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\$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.

Please be sure to hit ACCEPT and feel free to request me anytime.

Category: General
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Customer reply replied 5 years ago
If TruLite's basic production employee receives an hourly wage of Comp = \$5.00 + .10 Q in which Q is the number of light switches installed per hour, then:
 the employee can remain completely risk-averse. the employee must accept risk of production variability. output becomes a subjective measure of performance. there are no compensating differentials.
Expert: Mr. Gregory White, Teacher replied 5 years ago

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.

:-)

Category: General
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Mr. Gregory White, Teacher
Category: General
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