Merit Increases: An Example (optional material)
For instance, after trading coconuts to Friday in exchange for his thatch-weaving services, Crusoe may discover that Friday is more skilled at the task than he initially recognized. Consequently, he may offer to renew the contract at a higher rate of compensation. The "merit" coconuts, however, are offered in exchange for Friday's services under the new contract, and not as a contractual repayment for his past work.

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