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Questions 3-5 refer to the following information.   Safelite…

Posted byAnonymous December 2, 2025December 2, 2025

Questions

Questiоns 3-5 refer tо the fоllowing informаtion.   Sаfelite is а windshield repair company. If your windshield breaks, they send a technician to fix your windshield. Safelite used to pay its technicians a fixed hourly wage of $25/hour, regardless of the number of windshields they fixed. However they thought their technicians would work harder if they were instead paid $50 per windshield replaced.  This is called a piece rate contract.   Safelite wanted to test the piece rate contract with an experiment, but the union would not let them change everyone’s pay.  So instead, they ran an experiment where the treatment group was allowed to change its pay structure, but not required to do so. For the treatment group, workers could choose whether they wanted the fixed hourly wage contract or the piece rate contract. For the control group, there was no change to pay.   

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Tags: Accounting, Basic, qmb,

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