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Author Question: A factory owner wants his workers to produce as many widgets as they can, so he pays his workers ... (Read 143 times)

melina_rosy

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on: Jul 9, 2019
A factory owner wants his workers to produce as many widgets as they can, so he pays his workers based on how many widgets they produce. However, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. If a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. How is this factory owner seeking to solve the agency conflict problem in this case?
◦ by ensuring that all workers co-operate to maximize the gains of their section
◦ by maximizing the information that the principal obtains about the behavior of the agents
◦ by making the agents into principals themselves
◦

by supplying incentives so the agents act in the way principal desires

Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by melina_rosy on Jul 9, 2019

Zack0mack0101@yahoo.com

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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melina_rosy

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Reply 2 on: Jul 9, 2019
Wow, this really help

amit

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Reply 3 on: Yesterday
Excellent

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