Author Question: The principal-agent problem suggests that A) principals and agents always have the same goals. ... (Read 34 times)

jhjkgdfhk · **on:** Jun 29, 2018

The principal-agent problem suggests that

A) principals and agents always have the same goals.
B) principals and agents will never have the same goals.
C) principals and agents are more likely to have the same goals if the principal gives the agent flexibility to make his own decisions.
D) principals and agents are more likely to have the same goals if the agent's pay is tied to satisfying the principal's goals.

Question 2

The table above shows some of the costs for a perfectly competitive firm. The firm will produce 9 units of output if the price per unit is

A) 1750.
B) 200.
C) 300.
D) 500.