Conflict resolution of the manager-stockholder conflict in larger market-oriented firms is most effectively accomplished by

The dictator of a country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones. Other things the same, in the long run this requirement would

a. reduce real GDP per person and productivity. b. reduce real GDP per person but not productivity. c. reduce productivity but not real GDP per person. d. None of the above is correct.

Because of the free-rider problem:

A. the market demand for a public good is overstated. B. the market demand for a public good is nonexistent or understated. C. government has increasingly yielded to the private sector in producing public goods. D. public goods often create serious negative externalities.