One problem with a cost plus incentive fee procurement contract is _____
a. it requires clearly defined output that is not really malleable
b. it almost always leads to higher costs
c. firms have a strong incentive to invest in the most expensive technology to complete the project
d. firms have an incentive to misrepresent final costs
d
You might also like to view...
Refer to Figure 3-4. If the price is $10
A) there would be a surplus of 600 units. B) there would be a surplus of 200 units. C) there would be a shortage of 200 units. D) there would be a shortage of 600 units.
Assuming the Fisher Effect holds, and given U.S. tax laws, an increase in inflation
a. increases the real interest rate and the after-tax real rate of interest. b. increases the real interest rate and the after-tax real rate of interest. c. does not change the real interest rate but raises the after tax real rate of interest. d. does not change the real interest rate but reduces the after-tax real rate of interest.