A principal-agent problem occurs when
a. either a seller or buyer of labor is able to exercise a personal interest that undermines market efficiency
b. wage rates are greater than efficiency wages
c. wage rates are less than efficiency wages
d. agents representing professionals in a labor market exercise excessive negotiating power
e. agents representing professionals in a labor market are unable to represent their clients in a manner that generates maximum returns to the client
A
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"All monopolies operate with positive economic profits." Do you agree or disagree? Why?
What will be an ideal response?
The long run supply curve to a market depends on the characteristics of the firms that currently operate in it. Thus, the latter will be more elastic than the short-run supply curve
Indicate whether the statement is true or false
Refer to Table 21.3 below:Table 21.3Units of LaborUnits of OutputMPP00 1 30266 3 304116 How many units of output can be produced when one unit of labor is employed in Table 21.3?
A. 36. B. 66. C. 30. D. 0.
The government's too-big-to-fail policy applies to:
A. large corporate payroll accounts held by some banks where many people would lose their income. B. certain highly populated states where a bank run impacts a large percent of the total population. C. large banks whose failure would start a widespread panic in the financial system. D. banks that have branches in more than two states.