To avoid employees gaming the system
a. Try to anticipate the more obvious games
b. Adjust the compensation scheme to avoid the most obvious games
c. Monitor outcomes to ensure that you are getting the behavior you desire
d. All of the above
Question 2
In order to continue its operations, in the long-run a firm must
a. Charge a price that is equal to its AVC
b. Charge a price that is equal to its AFC
c. Charge a price that is equal to its AVC + AFC
d. Need more information to determine the price