Business, 12.08.2020 06:01 dmccarthey90

Consider a firm with several plants that all produce the same product. Each plant's manager has much better information about its production capacity than central management has. To prevent bottlenecks and to better schedule deliveries, you want each plant manger to accurately report his plant's capacity. If Q is actualoutput, Qf is the reported capacity, and B is a bonus measured in dollars, which of the following incentive schemes will elicit the most accurate reports from your plantmanagers?A) If Q > Qf B=0.4Qf + 0.3 (Q-Qf): if Q ≤ Qf, B=0.4Qf - 0.5(Qf-Q)B) If Q > Qf B=0.4Qf - 0.3 (Q-Qf): if Q ≤ Qf, B=0.4Qf - 0.5(Qf-Q)C) B=8,000-0.5(Qf - Q)D) B=8,000+0.5(Qf - Q)

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Consider a firm with several plants that all produce the same product. Each plant's manager has much...

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