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Critical Reasoning (CR) | Re: Firms adopting "profit-related-pay"(PRP) contratcs

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stunn3r wrote:

walker wrote:
D

The Assumption: there are no other reason of higher productivity in PRP-group.

D. Other reason: modernization of production equipment in the last five years


I can see why D is right .. I myself got it down to D and E .. but whats the problem with E?


Histunn3r ,

I am happy to help! :)

Firms adopting "profit-related-pay"(PRP) contracts pay wages at levels that vary with the firm's profits. In the metal working industry last year, firms with PRP contracts in place showed productivity
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