Monitoring of employees
A) is only effective while the employees are working, so that payment may be withheld for shirking.
B) can be effective after-the-fact if the shirking behavior can be detected later and the employee punished.
C) is only effective after-the-fact when it is possible to fire them for shirking.
D) None of the above.
D
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Which of the following is the free market economist Adam Smith no know for?
(A) The Wealth of Nations (B) The concept of the invisible hand. (C) Explaining the idea of laissez faire. (D) The circular flow model of a mixed economy.
When a firm leaves a perfectly competitive industry,
a. the individual demand curves facing remaining firms shift towards the point of minimum average cost in the long run. b. short-run industry equilibrium is re-established at a new point along the original short-run industry supply curve. c. the short-run industry supply curve shifts to the right. d. at the new long-run equilibrium, the remaining firms in the industry will each receive a higher profit.