Incentives That Focus Only on the Local Impact of an Action

question 8

Multiple Choice

Incentives that focus only on the local impact of an action result in decisions that

• A)do not maximize total supply chain profits.
• B)maximize total supply chain profits.
• C)minimize total supply chain profits.
• D)minimize total supply chain cost.

---

Definitions:

Statutory

Related to, or created by, statutes, which are laws enacted by a legislative body.

Mechanic's Lien

A legal claim against a property for unpaid work or supplies, giving workers and suppliers a form of security for their investment.

Homeowner

An individual who owns and resides in a house or property.

Contractor

An individual or company that enters into a contract to perform services or provide goods for another party in exchange for compensation.