The CEO of Dynadyne corporation has been more concerned with enhancing his lifestyle by having the company pay for expensive corporate retreats than he has been with increasing the value of the company's stock.
In this situation, the CEO is ________ and the stockholders are ________.
A) an agent; also agents B) the agent; the principals
C) a principal; also principals D) the principal; the agents
Question 2
One would speak of a movement along a supply curve for a good, rather than a change in supply, if
A) prices of substitutes in production change.
B) supplier expectations about future prices change.
C) the price of the good changes.
D) the cost of producing the good changes.
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