A potential problem arises in principal-agent relationships
a. because the agents' actions are not always observed by the principals
b. because the principals' actions are not always observed by the agents
c. because the agent's and the principals' actions are always observed by each other
d. the observability of actions is irrelevant
a
You might also like to view...
A free rider is a person who ________
A) can produce a good at a very low cost B) only consumes products provided by the government C) receives the benefit of a good without paying for it D) purchases products available for discounts
If marginal net utility is positive, the consumer must be buying too small a quantity to maximize total net utility. Why?
What will be an ideal response?
A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
a. A decrease in supply b. An increase in demand c. A decrease in demand d. An exception to the law of demand e. An increase in supply
An example of peak pricing is charging
A. more for long-distance phone calls in the daytime. B. less for electricity at night. C. more for public transportation in rush hours. D. All of the above are true.