Author Question: A conflict between an owner and a manager may occur when A) the manager earns more when the firm ... (Read 156 times)

Charlie · **on:** Jul 1, 2018

A conflict between an owner and a manager may occur when

A) the manager earns more when the firm has higher profits.
B) the manager is seeking to maximize leisure time.
C) the owner can easily observe the manager slacking off and punish him accordingly.
D) the firm is very small and the manager must perform multiple tasks.

Question 2

Sandy's current consumer surplus for candy is 20. Candy is an inferior good for her. When her income increases and the price of candy remains unchanged, her consumer surplus will

A) increase.
B) decrease.
C) remain the same.
D) Not enough information.