In which of the following situations is the principal-agent problem least likely to occur?
a. a hospital stay
b. a doctor's visit
c. a bartender serves you at the bar
d. your TV is repaired
e. a stockbroker calls with financial advice
C
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In the U.S., the ________ is a law to keep markets open and competitive
A) Sherman act B) Samuelson act C) Monopoly act D) pro-competition act
For a monopoly, at the level of output where marginal revenue equals zero, then the
A) firm earns no revenue. B) price elasticity of demand at this amount of output is zero. C) firm has maximized total revenue. D) firm is a price taker.
Technological innovations are not necessarily major scientific breakthroughs
Indicate whether the statement is true or false
Which of the following illustrates the concept of external benefit?
A) Good weather increases the size of the wheat crop. B) A new pesticide increases the size of the wheat crop. C) A gardener enjoys his flowers. D) Neighbors enjoy a gardener's flowers.