Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $130,000. Time spent working: Time spent shirking: When this same manager is given an annual, fixed salary of $130,000 and 5 percent of the firms profits amounting to a total salary of $165,000 per years the manager chooses to work 9 hours and shirks for 1 hours. Given this information, which of the compensation schemes does the manager prefer?
a. The manager is indifferent between the two payment schemes.
b. The scheme with only a fixed payment of $130,000.
c. The scheme with fixed payment of $130,000 and a percentage of profits.
Solved
Show answers
More tips
- W Work and Career Secrets of Punctuality: How to Learn to Never Be Late?...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- H Health and Medicine How to Treat Whooping Cough in Children?...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
- F Family and Home Why Having Pets at Home is Good for Your Health...
Answers on questions: Business
- B Business A company overstated its ending inventory in Year 1 by $60,000. The error was not discovered until Year 3. No errors were made in Year 2. After finding the error in Year 3, management...
- B Business Information in the Financial Statements A financial statement is a summary of all the financial transactions that have occurred over a particular period. Financial statements indicate...
- B Business Which of the following is considered currency in circulation? The money in the vault at the Second Federal Bank The dime that you have in your piggy bank The interest owed on your...
- B Business An unfavorable materials quantity variance indicates that: Garrison 16e Rechecks 2017-08-17 Multiple Choice actual usage of material exceeds the standard material allowed for output....
- B Business What is a founding principle of the US economy?...
- B Business C&A Pottery makes ceramic vases using a process that involves forming, drying, firing, and glazing. The 5 workers each takes on average 60 minutes to form a vase. The vases will...
- B Business Burkhardt Corp. pays a constant $14.40 dividend on its stock. The company will maintain this dividend for the next six years and will then cease paying dividends forever. If the required...
- B Business Sonya showed the office manager at Arunden Solutions how he could pay for the new copier she was selling by bringing more of Arunden s printing jobs in-house, saving money that had...
- B Business Suppose you compete in a Cournot oligopoly market consisting of six firms. The equilibrium market price and quantity are $5 and 10 units, respectively. The marginal cost for each...
- B Business Professional who specializes in analyzing and designing business systems is...
Ответ: