A firm that makes car parts wants to adopt pay schemes that will best motivate its various workers t

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A firm that makes car parts wants to adopt pay schemes that will best motivate its various workers to be productive and they hire you as a consultant.

Seats are assembled by teams of workers. The firm can accurately observe the output of each team, but not individual workers within a team. What problems might the firm encounter if output is based on team productivity? How might your answer vary with the size or composition of the teams?

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