The correct answer is: B. three rates
Merricks multiple piece rate system is a type of incentive wage system that pays workers a piece rate for each unit of output they produce, with the piece rate increasing as output increases. The system has three rates: a base rate, a first-level rate, and a second-level rate. The base rate is paid for all units produced up to a certain level of output, the first-level rate is paid for units produced above the base level but below a certain second level, and the second-level rate is paid for all units produced above the second level.
The Merrick system is designed to motivate workers to produce more output by increasing their earnings as they produce more. The system is also designed to be fair to workers by ensuring that they are paid a fair wage for their work.
Here is a brief explanation of each option:
- Option A: Two rates. This option is incorrect because the Merrick system has three rates, not two.
- Option B: Three rates. This option is correct because the Merrick system has three rates.
- Option C: Four rates. This option is incorrect because the Merrick system has three rates, not four.
- Option D: Five rates. This option is incorrect because the Merrick system has three rates, not five.