Under deferred compensation packages,
A) a moral hazard occurs if a firms fires a good worker before the worker receives her deferred compensation.
B) a moral hazard occurs if workers decide not to shirk so as to receive the deferred compensation.
C) moral hazards are avoided.
D) workers' wages are below their marginal revenue product as they near retirement.
A
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To decrease supplier power, the firm can
a. Increase rivalry among its suppliers b. Buy from multiple suppliers c. Both A&B d. None of the above
In a monopolistically competitive market, as the number of product variants decreases, the price of a particular firm's product is likely to ________ because the demand for each variety becomes more
A. increase; inelastic. B. increase; elastic. C. decrease; elastic. D. decrease; inelastic.