Piece rates are practical when A) individual output can be ...

[ahriuashd]

Piece rates are practical when
 
  A) individual output can be easily measured.
  B) the quantity of the work is of much less importance than quality.
  C) both employees and employers engage in opportunistic behavior.
  D) All of the above.

Question 2

Refer to the demand and supply equations. What are the equilibrium price and quantity?
 
  What will be an ideal response?

[mk6555]

Answer to Question 1

A

Answer to Question 2

Bring similar terms on each side of the equation and solve for equilibrium price and quantity  quantities which make the amount supplied equal to demanded.

2P + 4 P = 80 + 10; therefore, equilibrium P = 90/6 = 15. To confirm that it is the equilibrium price, substitute 15 in the above equations for P.

At 15 P, Qd = 80 - 2 (15 ) = 50 and Qs = - 10 + 4 (15 ) = 50; thus the equilibrium quantity equals 50 units.