Suppose employees pay a bond of $1,000 to an employer. The gain from shirking is $400. Monitoring devices have been installed so that there is a 50% chance of being caught if you are shirking
The company is considering the installation of additional monitoring devices to increase the chance of catching a shirker to 100%. They feel this is needed to deter all shirking. What is your recommendation to the company? Explain.
Shirking is already deterred; the company does not need any more monitoring devices. The employee gains $400 by shirking but has an expected loss of $500 (loses $1,000 with 50% probability).
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For a firm, what is the relationship between the quantity of input and quantity of output called?
a. the total-cost function b. the profit function c. the production function d. the quantity function
A company that undertakes an activity so that it can "do well by doing good" is practicing
A) strategic corporate social responsibility. B) altruistic corporate social responsibility. C) profit sharing. D) the survivor principle.