If your employees are self-interested how much output would, Ask an Expert

Economics

Let's say that you own a restaurant with 3 employees and you are trying to decide between two different production processes and two dierent pay schemes.

(a) Your rst idea is to have all 3 employees cook, clean, and wait tables. This implies that your production function is Q = q1 + q2 + q3, which means that your employees are substitutes.

i. Assume that you can monitor your employees output perfectly if you choose to, so that you can know each individual qi. If your employees are self-interested, how much output would you expect each individual worker to produce without monitoring?

ii. If you wanted to increase Q, what kind of pay scheme might you try? describe.
iii. From the point of view of the workers, what kind of game is this?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M945392

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question a bond has a face value of 1000 with maturity date

Question: A bond has a face value of $1,000 with maturity date 20 years from today. The bond pays interest semiannually at a rate of 8% per year based on the face value. If the current rate of similar bonds is 6%, what i ...

Question why is an understanding of development crucial to

Question: Why is an understanding of development crucial to policy formulation in developing nations? Do you think it is possible for a nation to agree on a rough definition of developmentand orient its strategies accord ...

Question how can governments identify good candidates for

Question: How can governments identify good candidates for infant industry protection? Can you suggest some key characteristics of good candidates? Why are industries like computers not good candidates for infant industr ...

Question - under the principle of insurance the

Question - Under the principle of insurance, the compensation that is provided is for the losses resulted from the risk existed previously. In some circumstances, for example natural disaster, not all losses could be cla ...

Question in the last few years the federal government cut

Question: In the last few years, the Federal government cut the GST (the federal sales tax on goods and services which Ontario later blended into the PST to create the HST) by two percentage points. The federal governmen ...

Question how does the official unemployment rate change

Question: How does the official unemployment rate change when these categories are added? What alternative measures of unemployment has the BLS created to address these limiations? The response must be typed, single spac ...

Question what features of medicare would cause an economist

Question: What feature(s) of Medicare would cause an economist to say that "Medicare stinks as insurance"? Medicare supplement insurance is available from the commercial market and most commonly covers ‘up-front' deducti ...

Question the cost of maintaining a new care is estimated at

Question: The cost of maintaining a new care is estimated at $295 the first year and to increase by $50 each year thereafter. How much should be set aside for maintenance, if the car is to be kept 10 years and if the mon ...

Question a why women are more likely to stay at home and

Question: a. Why women are more likely to stay at home and take care of children than men are? b. What you expect would happen to (a) if women's salary were to increase so that women make 10% more than men, for the same ...

Question scenario using the same organization and the

Question: Scenario: Using the same organization and the lemonade drink from the Week 4 Learning Team assignment, develop an analysis for the bank. The bank will be using this information to make their final decision on h ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert