A major drawback to cost plus fixed fee contracts when compared ...

[eruditmonkey@yahoo.com]

A major drawback to cost plus fixed fee contracts when compared to fixed fee contracts is _____.
 
  a. firms have an incentive to overbid
  b. the government must monitor the firm's costs
  c. the government has an incentive to award bids to the worst companies
   d. there is an adverse selection problem

Question 2

If the cost of labor increases, the isocost line will
 
  A) stay the same.
  B) shift outward in parallel fashion.
  C) rotate inward around the point where only capital is employed in production.
  D) shift inward in parallel fashion.

[kbennett34]

Answer to Question 1

b

Answer to Question 2

C

[eruditmonkey@yahoo.com]

Thanks for the timely response, appreciate it

[peter]

Gracias!