Author Question: If bargaining is costless and an externality exists: a. an efficient outcome may be reached ... (Read 15 times)

beccaep · **on:** Jul 1, 2018

If bargaining is costless and an externality exists:
a. an efficient outcome may be reached depending on which party is assigned property rights.
b. an efficient outcome will be reached regardless of which party is assigned property rights.
c. an efficient outcome will not be reached without government intervention.
d. an efficient outcome can never be reached.

Question 2

The components of a well-run incentive compensation scheme include all of the following EXCEPT
a. evaluating the identified performance measures
b. demonstrating that supervisors are friendly outside of the work environment
c. rewarding workers who for meet performance measures
d. identifying the relevant measures on which to evaluate employees