Figure 18-3 Shows Two Different Compensation Schemes for the Youness

Figure 18-3 shows two different compensation schemes for the Youness Corporation, an installer of auto glass windshields. Under Scheme I, the firm pays a consistent daily wage of $80 per day based on an 8-hour workday. Q_Min in represents the cut-off point under the hourly-wage system: if a worker installed fewer than Q_Min in windshields, the worker got fired. Scheme II represents a piece-rate scheme with an earnings floor: no worker would get less than $80 per day (for an 8-hour workday) and would have to produce at least Q_Min in. For any output level beyond Q* the worker earned an additional $20 for each unit produced.
-Refer to Figure 18 -3. Suppose Q_Min = 2 windshields and Q*=5 windshields. Under Scheme II, a worker has to install Q* windshields before she earns an additional $20 per windshield installed. What is a potential problem with this scheme?

A) Workers have no incentive to produce output to between Q_Min and Q*.
B) Workers might be more concerned with increasing output beyond Q* and less concerned with the quality of their work.
C) It violates labor laws because workers are not compensated for output between Q_Min and Q*.
D) Any increase in output between Q_Min and Q* benefits the employer only.