Corporations have a separation and control problem because
A) owners and managers frequently have different incentives.
B) most of the profits are reinvested.
C) the shareholders control the firm.
D) taxes are paid only by the board of directors.
A
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If output changes in fixed proportion to a change in all of a firm’s productive resources, the firm has
a. constant marginal returns. b. constant returns to scale. c. decreasing marginal returns. d. decreasing returns to scale.
Explain the two stabilization policies politicians use to smooth business cycles
Please provide the best answer for the statement.
Present value is
A. the nominal value instead of the real value of something. B. the value of a dollar received a year from now, expressed in terms of its future value. C. the inverse of the interest rate. D. the value of a future amount expressed in today's dollars.
In the long run, if some monopolistically competitive firms are earning economic losses then
A. firms will leave the industry. B. raise prices until they earn economic profits. C. new firms will enter the industry. D. they will increase production until marginal costs fall.