To accomplish its purpose a linear profit-sharing contract must
A) induce the employee to moonlight
B) communicate a code of conduct that will be monitored and enforced
C) meet either the participation or the incentive compatibility constraint
D) establish a separating equilibrium
E) not realign incentives

Question

Quizplus · Accepted Answer

The Answer of To accomplish its purpose a linear profit-sharing contract must
A) induce the employee to moonlight
B) communicate a code of conduct that will be monitored and enforced
C) meet either the participation or the incentive compatibility constraint
D) establish a separating equilibrium
E) not realign incentives

To Accomplish Its Purpose a Linear Profit-Sharing Contract Must