Author Question: The annual rental rate for a machine is: a. the yearly depreciation and maintenance costs for the ... (Read 74 times)

stevenposner · **on:** Jul 1, 2018

The annual rental rate for a machine is:
a. the yearly depreciation and maintenance costs for the machine.
b. the yearly interest costs associated with owning the machine.
c. the initial purchase price of the machine divided by the number of years the machine is expected to last.
d. the sum of the yearly depreciation, maintenance, and interest costs associated with owning the machine.

Question 2

To keep employees from shirking, you can invest in greater monitoring
a. even though monitoring is expensive
b. especially when monitoring is not very efficient
c. when employees respond well to incentive contracts
d. when incentives fail to solve either moral hazard and adverse selection problems with employees