Explaining the Output-Satisfaction Trade-Off
A software developer works at a company that rewards them with a bonus based on the number of lines of code they write. The developer works long hours to maximize their bonus but feels constantly tired. The company then changes its policy: they now offer a smaller, fixed bonus for completing projects on time and introduce a strict 'no work after 6 PM' rule. After this change, the developer's total code output decreases, but they report feeling more satisfied with their job. Using the concept of trade-offs, explain how it is possible for the developer to have lower output but higher overall satisfaction.
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Economics
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Introduction to Microeconomics Course
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CORE Econ
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