Which of the following should result in more intense incentives. Select one or more: a. The agent finds extra risk very costly. b. A little bit of effort from the agent has a big effect on output. c. The principal observes a signal that is weakly correlated with the agent's effort. d. The variable that the manager cares about is mainly random. e. There is accurate data that the principal can observe on the agent's effort. f. The marginal cost of the agent's effort is small.
Which of the following should result in more intense incentives. Select one or more: a. The agent finds extra risk very costly. b. A little bit of effort from the agent has a big effect on output. c. The principal observes a signal that is weakly correlated with the agent's effort. d. The variable that the manager cares about is mainly random. e. There is accurate data that the principal can observe on the agent's effort. f. The marginal cost of the agent's effort is small.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Which of the following should result in more intense incentives.
Select one or more:
a. The agent finds extra risk very costly.
b. A little bit of effort from the agent has a big effect on output.
c. The principal observes a signal that is weakly correlated with the agent's effort.
d. The variable that the manager cares about is mainly random.
e. There is accurate data that the principal can observe on the agent's effort.
f. The marginal cost of the agent's effort is small.
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