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nakungth nakungth
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6 years ago
What is the problem with paying plant managers in multi-plant firms according to the level of output they produce?
A) Managers in low-cost or high-capacity plants could be penalized, in percentage terms, for their overproduction.
B) The production problem in multi-plant firms is usually how to lower production to increase market power, not how to increase production.
C) Managers in high-cost or low-capacity plants could be penalized for production constraints over which they have no control.
D) Managers would have an incentive to understate the productive capacity of their plants.
E) Managers would have an incentive to overstate the productive capacity of their plants.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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oracledarrenoracledarren
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6 years ago
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nakungth Author
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6 years ago
Helped a lot
Marcie D
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
DaiwalkerX
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2 hours ago
Just got PERFECT on my quiz
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