A rising piece rate involves a standard time and rate of production. The worker who increases output by 50% has a greater than proportional increase in hourly earnings.

Question

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A rising piece rate means that the rate of pay per unit increases as the worker produces more units. Thus, if the worker increases output by 50%, they will earn more than 50% more per hour because of the higher rate of pay per unit. This results in a greater than proportional increase in hourly earnings.

A Rising Piece Rate Involves a Standard Time and Rate