Which of the following is a reason why some firms do not use commission? pay???
A.
It is difficult to measure the output and attribute output to a particular worker.
B.
It gives workers incentive to produce more.
C.
It increases firm profits.
D.
The best workers stay and less productive workers leave.
option A is the most suitable answer among all four of them. i used elimination method to come to the conclusion .
option b : if commission pay is giving the workers incentive to produce more then why will a firm no give the commission.
option c : if it increases profit then again every firm will try to give commission pay
option d: if best worker will stay and less productive will leave then it is good for the firm only as it will get value for the wages it is paying. hence, it will pay commission
thus, rejecting all 3 we come the conclusion that option a is the correct answer.
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