LABOR ECONOMICS
LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 11, Problem 2P
To determine

The taxicab industry.

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Explain the meaning of an attractive compensation package.
As an employer, suppose you find it costly to monitor employee effort 100 percent of the time.  What compensation options, in terms of the basis of pay, are available to ensure that you get appropriate levels of employee effort?  What factors would you consider in choosing among these options?
What could the remedy be in this case? Could the buyer even have a right to compensation, even if the buyer in the case had not submitted any evidence of the actual loss?
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