Question: Many companies that pay workers an hourly wage require some minimum level of acceptable output. Suppose a company that has been using this system decides

Many companies that pay workers an hourly wage require some minimum level of acceptable output. Suppose a company that has been using this system decides to switch to a piece-rate system under which workers are compensated on the basis of how much output they produce. Is it likely that workers under a piece-rate system will end up choosing to produce less than the minimum output required under the hourly wage system? Briefly explain.

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