Incentive-Compatible Employment Contracts Exist When

Multiple Choice

Incentive-compatible employment contracts exist when:

A) the firm and workers have the same objective.
B) owners and managers have the same level of income.
C) incentives of owners and managers are compatible with, though not necessarily the same as, one another.
D) owners and managers have the same objectives as consumers of the products they produce.
E) base pay for managers is equal to the profit share they realize.