If MRPlabor/MRClabor > MRPcapital/MRCcapital, then the firm should
a. hire more labor
b. substitute capital for labor
c. not change anything
d. buy more capital
e. decrease the amount of labor
A
Economics
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What will be an ideal response?
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Principal-agent problems are less likely to arise
a. if it is easy for principals to know agents' actions and if there is less conflict between their goals b. if it is difficult for principals to know agents' actions and if there is less conflict between their goals c. if it is easy for principals to know agents' actions and if there is some difference in their goals d. if it is difficult for principals to know agents' actions and if there is some difference in their goals e. if agents have higher incomes
Economics