Production inefficiency is most likely to occur when the principal has more information about work performance than the agent does
Indicate whether the statement is true or false
False. It is when the agent has more information that production inefficiency is more likely to occur. The agent is able to shirk without being detected by the principal.
Economics
You might also like to view...
One major similarity between perfect competition and monopolistic competition is that:
a. the firms earn above normal profits in the long run. b. the firms are price makers. c. the firms produce identical products. d. the firms just break even in the long run. e. entry of firms is barred in the long run.
Economics
Which of the following types of goods are rival in consumption?
a. private goods and club goods b. private goods and common resources c. public goods and club goods d. public goods and common resources
Economics