If the entrepreneur is also the manager of the firm, we would expect
A) the manager to work hard because he or she is also the residual claimant.
B) the manager to not work hard since there is no possibility of further advancement.
C) the firm to operate poorly because the specialization of labor is not adequate.
D) the firm to operate poorly because the entrepreneur is not as good at managing workers as a professional manager would be.
A
You might also like to view...
In comparison to firms in other market structures, monopolists:
A) maximize social surplus. B) encourage the entry and exit of new firms. C) set price lower than marginal revenue. D) produce goods that do not have close substitutes.
If an economy saves 20 percent of any increase in real Gross Domestic Product (GDP), then an increase in investment of $2 billion can produce an increase in real Gross Domestic Product (GDP) of as much as
A) $2 billion. B) $10 billion. C) $0.4 billion. D) $1.6 billion.