The CEO and stockholders are not necessarily the same people. This gives rise to
A) upstream and downstream contracts.
B) a principal-agent problem.
C) complete contracts.
D) a control over moral hazard.
B
Economics
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Starting from equilibrium in the ISLM framework, a decrease in money demand results in
A) a rise in income and the interest rate. B) a rise in income and a decline in the interest rate. C) a decline in income and the interest rate. D) a decline in income and a rise in the interest rate.
Economics
Price searchers can be expected to charge a price that
a. is the highest at which consumers will purchase any units. b. they expect to provide the largest possible flow of gross revenue. c. minimizes their per-unit costs of production. d. maximizes their profit.
Economics