The value of an additional baker to a bakery is equal to the
A) price of bread.
B) value of marginal product of the baker.
C) baker's marginal productivity in terms of loaves of bread.
D) marginal cost of making an additional loaf of bread.
Question 2
Gilda's Art Gallery rewards its employees with stock each year the gallery makes profits. This stock allows the employees to own part of the gallery. This practice is known as
A) the principle-agent problem.
B) incentive pay.
C) minimizing implicit costs.
D) minimizing explicit costs.
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