Final answer:
Lancelot's pay structure is an example of a Differential piece-rate system, which provides a standard rate per unit with an increased rate after meeting a specific production goal.
Step-by-step explanation:
The pay system Lancelot is under represents a Differential piece-rate system. This system is characterized by workers being paid a standard rate per piece (or unit of work) completed, but also offers an increased rate once a certain production threshold has been met.
In Lancelot's case, he receives $1 per pant hemmed up to 50 pants; however, if he reaches this goal in fewer days than the average, in this case within 2 days instead of 5, the rate increases to $3 per pant hemmed for the remaining time. This type of system is designed to incentivize higher productivity and efficiency among workers.
The pay system described in the question represents a Differential piece-rate system. In this system, Lancelot initially receives $1 for each pair of pants he hems up to 50 pants. However, if he reaches this goal in 2 days instead of the average of 5 days, he will receive $3 per pant hemmed for the remaining 3 days of the workweek.