Suppose an agent must pay the full marginal cost for an item but splits the marginal revenue with the principal. As a result,
A) joint profit is maximized.
B) joint profit is not maximized.
C) the agent will not enter into such a contract.
D) the agent wishes to sell as many items as he can.
B
You might also like to view...
Fiscal policy attempts to make access to credit easier and cheaper
Indicate whether the statement is true or false
A restaurant owner hires a waiter to serve food to customers and clear the tables. The owner wants the waiter to be prompt in bringing out the food and clearing the table once the guests are finished with their meal. The waiter is paid a salary and cannot accept tips. The waiter would prefer to check their Facebook account and take their time waiting the tables. If the waiter does spend
considerable time checking their Facebook while the owner is not at the restaurant, the owner can motivate the waiter to be prompt waiting tables (and stop checking Facebook) in each of the following ways except which one? A) Lower the waiter's salary, but allow the waiter to earn a percentage of the restaurant's profit. B) Lower the waiter's salary, but pay the waiter a bonus based on the number of tables served in an evening. C) Lower the waiter's salary, but allow the waiter to collect tips from customers. D) Offer the waiter a higher salary.
Someone who is risk-averse is likely to:
A. buy a government bond instead of a stock. B. invest in a start-up company instead of putting her money under her mattress. C. buy company stock instead of putting money in a savings account. D. All of these statements are true.
Which of the following groups of people would be included in the official unemployment rate?
a. part-time workers b. workers temporarily laid off from jobs to which they expect to return c. discouraged workers d. all of the above