Suppose that a windshield business changes from paying its workers an hourly wage rate to a piece rate system (i.e., paying workers for each windshield installed). The new compensation scheme increases workers' productivity by 44%, with only a negligible effect on their earnings. Graphically illustrate how the change in compensation affects the total cost of windshield installation.

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The Answer of Suppose that a windshield business changes from paying its workers an hourly wage rate to a piece rate system (i.e., paying workers for each windshield installed). The new compensation scheme increases workers' productivity by 44%, with only a negligible effect on their earnings. Graphically illustrate how the change in compensation affects the total cost of windshield installation.

Suppose That a Windshield Business Changes from Paying Its Workers