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Chau Owns a Small Garment Factory

Question 105

Multiple Choice

Chau owns a small garment factory. What two things happen when she changes her pay structure from an hourly rate to a piece rate?


A) Worker productivity varies more, and her costs rise.
B) Worker productivity varies more, and she has a harder time hiring workers.
C) Worker productivity rises, and her most productive workers quit.
D) Worker productivity rises, and the quality of the finished garments decreases.

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