A person acting as a supervisor as well as a residual claimant:
a. attempts to make value-maximizing investment decisions.
b. aims to maximize a firm's sales.
c. facilitates maximum investment in capital goods.
d. reduces risk of opportunism.
A
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Suppose the capital stock increases by 10% and the number of employed workers increases by 5%. Given this information, explain what will happen to output and to output per worker
What will be an ideal response?
If the United States could produce 1 ton of potatoes or 1 ton of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if: a. the United States specializes in potatoes because of its comparative advantage in producing potatoes. b. the United States specializes in wheat because of its absolute
advantage in producing wheat. c. the United States specializes in wheat because of its comparative advantage in producing wheat. d. there can be no mutual gains from trade.