The informativeness principle tells us that:
A. one must only use information that is necessary to develop compensation contracts, as long as the cost of obtaining the information is reasonable.
B. one must use as much information as possible to develop compensation contracts, even if the cost of obtaining the information is unreasonable.
C. information is overrated because employees can always lie about their performance, and detecting is costly and counter-productive.
D. you must use as much information as possible to develop compensation contracts, as long as the cost of obtaining the information is reasonable.
Answer: D
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The following table shows the total physical product of labor. Compute the marginal physical product (MPP) of labor and the marginal revenue product (MRP) of labor at output prices of $10 per unit and $12 per unit. If labor costs $105 per unit, how much should the firm hire at each price of output? Total Physical MPP of Labor MRP at a Price of $10 MRP at a Price of $12 LaborProduct of Labor 110_______________222_______________335_______________447_______________558_______________668_______________777_______________885_______________?
What will be an ideal response?
The external shock that hit Mexico and other Latin American countries in the early 1980s that caused the Lost Decade was a collapse in world oil prices
Indicate whether the statement is true or false
Suppose a monopolist's demand curve is P = 60 - Q, and its cost function is C = 10Q + 50 so its marginal cost is 10. If a governmental agency wished to set the price that maximized social welfare, that price would be
A) $10.00. B) $11.02. C) $14.57. D) $35.00.
Two main reasons that the deficit may increase are:
A. decreases in tax revenues and an increase in government spending. B. changes in interest rates and unemployment. C. increases in household spending and decreases in firm spending. D. decreases in tax revenues and government spending.