The possibility that the managers of a corporation might not ...

[Arii_bell]

The possibility that the managers of a corporation might not always act in the best interest of its owners is an example of the principal-agent problem.
 
  Indicate whether the statement is true or false

Question 2

Consumer surplus ________.
 
  A) equals total revenue minus marginal cost
  B) is maximized when the market outcome is efficient
  C) equals total revenue minus opportunity cost
  D) plus producer surplus is maximized when resources are used efficiently

[Ddddd]

Answer to Question 1

TRUE

Answer to Question 2

D