Which of the following statements regarding principal-agent relations is CORRECT?
A) Workers are principals for managers.
B) Stockholders are agents.
C) Managers are both principals and agents.
D) All of the above answers are correct.
C
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In the above figure, CBL is the cost of breaking the law. If the good in the figure is made illegal and penalties are imposed on both buyers and sellers, then its price per unit
A) will be higher than if it was not illegal. B) will be lower than if it was not illegal. C) will be the same as when it was not illegal. D) cannot be compared with its price when it was legal.
A perfectly competitive apple farm produces 1,000 bushels of apples at a total cost of $36,000. The price of each bushel is $50. Calculate the firm's short-run profit or loss
A) profit of $50,000 B) loss of $14,000 C) profit of $14,000 D) There is insufficient information to answer the question.