Answer the following statements true (T) or false (F)
1) If managers holding an auction release more information about the value of the item, they will reduce their profit.
2) Regardless of whether an auction's purpose is to sell a product or buy one, providing more information about the value of the auctioned item can benefit the auction's managers because bidders will have more confidence in their valuations.
3) Regardless of what policies a manager creates, it is unlikely that the manager can completely solve the principal-agent problem.
4) If restaurant managers have a policy that servers' tips are to be combined and then shared equally at the end of the day, this will incentivize all servers to to take the best care of their customers.
5) In general, if managers are able to make a job more appealing to an employee, this helps managers as it reduces labor turnover.
1) FALSE
2) TRUE
3) TRUE
4) FALSE
5) TRUE
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