Use the following to answer questions:
Figure: Piece Rates
-(Figure: Piece Rates) Refer to the figure. A piece rate is offered for every 10 bags of wheat that workers fill. Which of the three piece rates plotted in the figure above has the highest dollar value to the firm?

Question

Use the following to answer questions:
Figure: Piece Rates

-(Figure: Piece Rates) Refer to the figure. A piece rate is offered for every 10 bags of wheat that workers fill. Which of the three piece rates plotted in the figure above has the highest dollar value to the firm?

Quizplus · Accepted Answer

The highest dollar value to the firm would be the piece rate that yields the highest total revenue for the amount of bags filled. In this case, it is the P₃ piece rate, which yields $130 of revenue for 100 bags filled, compared to P₂, which yields $120 of revenue for 90 bags filled, and P₁, which yields $110 of revenue for 80 bags filled.

Use the Following to Answer Questions