A feasible solution to ensure that the sales agents are pricing the merchandise in the firm's best interest and not too aggressively is to
a. Never let them reduce the price
b. Let them control the pricing decision independently
c. Require the sales agents to obtain permission to reduce price below a specific threshold
d. All of the above
Question 2
The primary objective of a for-profit firm is to ___________.
a. maximize agency costs
b. minimize average cost
c. maximize total revenue
d. set output where total revenue equals total cost
e. maximize shareholder value
