The ways to address agency costs include
a. gathering information about the agent's characteristics before hiring
b. gathering information about the agent's actions once hired
c. incentivizing agents to work on behalf of principals
d. all of the above
d
You might also like to view...
Refer to Table 8-19. Given the information above, calculate the GDP deflator in 2015
A) 87 B) 95 C) 105 D) 114
Assume the demand function for good X can be written as Qd = 80 - 3Px + 2Py + 10I, where Px = the price of X, Py = the price of good Y, and I = Consumer income. According to this equation:
A) a rise in the price of Y would cause the demand for X to decrease. B) X and Y are complements C) X is an inferior good. D) X and Y are substitutes.
The ________ the returns on two securities move together, the ________ benefit there is from diversification
A) less; more B) less; less C) more; more D) more; greater
Refer to the above table. This firm operates in a perfectly competitive market in which the market price is $10/unit. What is TRUE when the firm produces 103 units?
A. Marginal revenue is less than marginal cost. B. Total costs exceed total revenue by $403. C. Total revenue equals $5,060. D. Its total profit is $524.