Which incentive scheme would simultaneously elicit accurate information about feasible plant production levels and motivate managers to perform up to potential (in the following schemes, B is the bonus payment, Q is actual plant output, and Qf is the

manager's estimate of feasible output)? A) B = 0.4Q
B) B = 0.4(Q - Qf)
C) B = 0.4Qf + 0.3(Q - Qf) if Q > Qf
D) B = 0.4Qf - 0.6(Q - Qf) if Q < Qf
E) B = 0.4Qf - 0.6(Q - Qf) if Q > Qf

C