A potential problem arises in principal-agent relationships
a. because the agents and the principals have identical goals
b. because the principals may want to minimize his profits, while the agent may want to maximize them
c. because the agents may have different goals from the principals
d. the goals of principals and agents are irrelevant
c
You might also like to view...
All of the following characteristics are common to both monopolistic competition and perfect competition except
A) firms act to maximize profit. B) firms take market prices as given. C) entry barriers into the industries are low. D) the market demand curves are downward-sloping.
Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) perfectly inelastic.