Answer Happy

The following graph shows the relationship between utility and ability of worker A and B. x* is the optimum ability for all workers. Use the following graph to answer question 3 and 4. Utility Piece-Rate Workers ra Time-Rate Workers Ability Worker A Worker B 3. The case for Worker A, firm would likely to use a. Time-rate pay since worker A can produce higher output than worker B. b. Piece-rate pay since worker A's productivity is lower than worker B's. C. Time-rate pay since firm is trying to maximize profit. d. Piece-rate pay since worker A can enjoy leisure time than using Time-rate pay. e. There is no difference between time-rate and piece-rate pay systems for worker A.