A college must decide if it wants to offer more adult literacy classes. This decision involves answering the economic question of "what to produce."

Refer to Table 4-13. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units. What is the value of producer surplus?

A) $600 thousand B) $300 thousand C) $150 thousand D) $30 thousand

To keep employees from shirking, invest in greater monitoring

a. when monitoring is expensive relative to its benefits b. especially when monitoring is not very efficient c. when employees fail to respond to incentive contracts d. when incentives solve both moral hazard and adverse selection problems with employees