This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A factory owner wants his workers to produce as many widgets as they can, so he pays his workers ... (Read 129 times)

melina_rosy

  • Hero Member
  • *****
  • Posts: 531
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by melina_rosy on Jul 9, 2019

Zack0mack0101@yahoo.com

  • Sr. Member
  • ****
  • Posts: 341
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.
Answer Preview
Only 25% of students answer this correctly


melina_rosy

  • Member
  • Posts: 531
Reply 2 on: Jul 9, 2019
Thanks for the timely response, appreciate it

Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Step 2 of gene cloning: The actions of a restriction enzyme and DNA ligase to produce a recombinant Step 2 of gene cloning: The actions of a restriction enzyme and DNA ligase to produce a recombinant
Activating a gene to produce “marathon mice.” Activating a gene to produce “marathon mice.”
A single crossover cannot produce a viable recombinant A single crossover cannot produce a viable recombinant
Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010 Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010
Bt corn has been genetically engineered to produce a protein Bt corn has been genetically engineered to produce a protein
Specialized Workers: Soldier Ant Specialized Workers: Soldier Ant
Video: Acid-base imbalances - compensation of metabolic acidosis and alkalosis

For a complete list of videos, visit our video library