This question is on microeconomics

(llpts) (True/ false) Suppose that, at the beginning of the year, an owner of a rm wants to learn the true capacity of her regional plant (i.e., how much the plant can produce by the end of the year). She knows that the manager of the plant knows the capacity of the plant perfectly. To induce the manager to truthfully report the true capacity, the owner designs the following bonus schemes: let Qf the capacity of the plant reported by the manager at the beginning of the year, and let Q denote the actual production level at the end of the year. Then the bonus that will be awarded to the manager is as follows: 0 If Q > Qf, then B = 0.3Qf + 0.2(Q Qf) . If Q g of, then B = 0.3Qf 0.5(Qf Q) Assume that the manager only cares about how much bonus that he receives. This bonus contract will induce the manager to truthfully report the true capacity of the plant