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Author Question: Refer to the production function. The total product at 4 units equals ________ units. Fill in the ... (Read 172 times)

xclash

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on: Jul 1, 2018
Refer to the production function. The total product at 4 units equals ________ units.
 
  Fill in the blank(s) with correct word

Question 2

Production inefficiency is more likely to occur when the principal has more information about work performance than the agent does.
 
  Indicate whether the statement is true or false


isabelt_18

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Reply #1 on: Jul 1, 2018
Answer to Question 1

Substituting 4 for X, we get Y= 10 (4 ) + 20 (4 )2 - (4 )3

we obtain Y = 40 + 320 - 64
= 360 - 64
= 296 units

Answer to Question 2

False. It is when the agent has more information that production inefficiency is more likely to occur. The agent is able to shirk without being detected by the principal.


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