Author Question: The major reason the market demand curve for labor slopes downward is because: a. at lower wage ... (Read 69 times)

jc611 · **on:** Jun 30, 2018

The major reason the market demand curve for labor slopes downward is because:
a. at lower wage rates, workers are less willing to supply labor to the market.
b. at lower wage rates, workers are more willing to supply labor to the market.
c. of the law of diminishing marginal product.
d. of the law of diminishing marginal resource cost.

Question 2

Why is it necessary to separate the management function in an organization from those of finance and residual claimancy?

ladyjames123 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

Separation of the management function from those of finance and residual claimancy is essential because:
a) The skills and opportunity costs of management is entirely different from that of the residual claimants.
b) Residual claimants who have interests in more than one firm are diversified in ways that managers who depend on a single employer for most of their incomes cannot be.
c) A diversified residual claimant generally has less understanding of the firm than a manager and has little knowledge that is likely to improve the quality of the manager's choices.