The function of the agent in the principal-agent relationship is

A) to be trusted with the principal's information.
B) to perform tasks for the principal.
C) to be the legal advisor of the principal.
D) to act as go-between for the principal's negotiations.


B

Economics

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A typical American family sends about _____ percent of its budget on services. 

A. 20 B. 32 C. 66 D. 70

Economics

Assume the elasticity of of supply for a particular good has been estimated to equal 1.8. In this case, a 10 percent increase in product price would cause the quantity supplied to:

A) decrease by 1.8 percent. B) increase by 1.8 percent. C) decrease by 18 percent. D) increase by 18 percent.

Economics

Which of the following holds true?

A) When the Marginal Product (MP) is rising, Marginal cost (MC) is rising; and when MP is falling, MC is falling. B) When MP is rising, MC is falling, and when MP is falling, MC is rising. C) When MP is rising, MC is constant, and when MP is falling, MC is negative. D) There is no relationship between MP and MC.

Economics

Refer to the diagram. Assuming equilibrium price P 1, consumer surplus is represented by areas:

image

A. a + b.
B. a + b + c + d.
C. c + d.
D. a + c.

Economics