Author Question: Monitoring a manager can be difficult if A) the owner and manager do not have an enforceable ... (Read 86 times)

big1devin · **on:** Jul 1, 2018

Monitoring a manager can be difficult if

A) the owner and manager do not have an enforceable contract.
B) the owner cannot easily observe the manager's actions.
C) the manager doesn't have to use a time clock.
D) the board does not have enough outside directors.

Question 2

An incumbent firm uses limit pricing

A) to set price below a potential rival's marginal cost, thus making entry unprofitable.
B) to set one price for a quantity of a good below a certain limit, and a second price for purchases above the limit.
C) when it has no other advantages over a potential rival.
D) if it is limited in the quantity of inputs it can purchase to produce output.