Reasons Why Incentive Plans Do Not Work Include All of the Following

question 72

Short Answer

Reasons why incentive plans do not work include all of the following except
firms do not get what they pay for.
pay is not a motivator.
performance pay cannot replace good management.
rewards may undermine responsiveness.
rewards rupture relationships.

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Definitions:

Short Run

A time period in economics during which at least one input (such as plant size) is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing full adjustment to changes.

Average-Total-Cost Curve

A graphical representation in economics that shows how the average total cost of production changes as the quantity of output is altered.

Marginal Cost

The elevation in costs incurred by the creation of an additional unit of a good or service.