Latasha knows Jake will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Jake. The most Latasha should be willing to pay Carrie to supervise Jake, assuming supervision is sufficient to encourage Jake to work hard, is $20.
What is shirking in economics?
The propensity to work less when the payoff is lower. Because they maintain less ownership stake in the company and could potentially receive a lower return, owners may be more motivated to shirk if they issue equity as opposed to debt.
Does a worker benefit from shirking?
Subjects are permitted to participate in two tasks, one of which simulates work for an employer and the other of which allows for rewards for shirking. We discover that subjects who are given incentives to shirk, whereas monitoring and a realistic quota result in higher output.
Learn more about shirking: brainly.com/question/15300255
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