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ProblemSet8 - Economics 3203 Fall 2010 Problem Set 8 Pay...

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Economics 3203 Fall 2010 Problem Set # 8: Pay & Productivity; Gender & Race Due Monday, December 6 (in class) 1. Two soft-drink bottling companies employ drivers to deliver cases of drinks to stores and restaurants. One company pays its drivers an hourly wage, while the other pays them by the number of cases delivered each day (which can be affected by efforts of drivers to visit and sell to new customers). Which company is more likely to experience higher rates of traffic accidents and back injuries (from lifting heavy cases) among its drivers? Why? 2. There are 300 workers in a textile factory who make winter scarves. Of these workers, 100 of them produce 2 scarves per hour, 100 produce 3 scarves per hour, and the other 100 produce 4 scarves per hour. They are currently all paid on the basis of their time at a rate of $12 per hour, and scarves sell for $5 each in a competitive product market. Jobs outside the firm are available at a wage rate of $11 per hour.
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