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Author Question: To keep employees from shirking, invest in greater monitoring a. when monitoring is expensive ... (Read 129 times)

NguyenJ

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on: Jul 1, 2018
To keep employees from shirking, invest in greater monitoring
 a. when monitoring is expensive relative to its benefits
 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

Question 2

Average cost is
 a. Total variable cost divided by total units produced
  b. Total fixed cost divided by total units produced
  c. Total cost divided by total units produced
  d. Equal to marginal cost


Pariscourtney

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

c


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