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sweet [91]
3 years ago
7

The principal-agent problem arises when ________.

Business
1 answer:
Paha777 [63]3 years ago
3 0

Answer:

a. the owners of the firm also manage the firm

Explanation:

In domain of supply chain management and economics principal–agent problem can be regarded as one that occur when single person or an entity stand in the position of making decisions or in position of taking actions on behalf of another person/ entity Instance of this is real-life example where the way that companies are been owned and been operated. The owners of the company i.e "principal" of the company will be the one to elect a board of directors.

It should be noted that the principal-agent problem arises when the owners of the firm also manage the firm

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Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their feres
Scorpion4ik [409]

Solution:

Let's start by assuming that the taxi ride demand is extremely elastic, to the extent that it is vertically sluggish! If the cabbies raise the fair price by 10% from 10.00 per mile to 11.00 per kilometre, the number of riders remains 20.

Total income before fair growth= 20* 10= 200.

Total income following fair growth = 11* 20= 220.

A 10% increase in the fare therefore leads to a 10% increase in the driver's revenue.

Therefore, the assumption in this situation is that the cab drivers think the taxi driving requirement is highly inelastic.

The demand curve facing the drivers of the cab is still inelastic, but not vertically bent.

When the rate increased from 10% to 11, riders declined from 20% to 19%

Total revenue before fair growth is 20* 10= 200

The gap between revenue and fair growth is 19* 11= 209

This means that a realistic 10% raise doesn't result in a 10% boost on income Because the market curve for taxi rides is not 100% inelastic, but rather low inelastic, so that a fair increase (control) allows consumers to lose their incomes.

7 0
4 years ago
In 2013, there were approximately 155 million people in the labor force and the unemployment rate was 7.4 percent. If the unempl
Marianna [84]

Answer:

(a) 3.7

(b) 3.7

Explanation:

The unemployment rate is calculated as the ration of unemployed workers over the labor force. The labor force is the total number of employed plus unemployed workers:

Unemployment\,Rate=\frac{Unemployed\,Workers}{Labor\,Force}=\frac{Unemployed\,Workers}{Employed\,Workers+Unemployed\,Workers}

Then if there were 155 million people in the labor force and 7.4% where unemployed that means that 11.47 million people where unemployed

0.074=\frac{Unemployed\,Workers}{155}

Unemployed\,Workers=0.074*155=11.47

If unemployment rate would have been 5% we have

Unemployed\,Workers=0.05*155=7.75

That means that 3.72 million fewer unemployed workers. Since Labor Force is the sum of unemployed and employed workers. The reduction in unemployment implies that they were now employed .

5 0
4 years ago
How much something cost is it's blank value?
Sav [38]
I don't believe that is true
4 0
4 years ago
Read 2 more answers
Felicity has modified the location of elements on a form and now needs to ensure that users can navigate using the keyboard. Whi
Andrei [34K]

Answer:

Tab order

Explanation:

Just took it

6 0
3 years ago
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In Vintland, sanitation engineers are being replaced with garbage robots, which have fewer negative effects and many more signif
pychu [463]

Answer: GDP decreases and standard of living increases

Explanation:

Based on the information given, the short-run effects of this industrial change on Vintland's GDP and its standard of living is that there'll be a reduction in the gross domestic product and an increase in the standard of living.

The reduction in GDP will be as a result of the reduction in the price of collecting garbage. On the other hand, the replacement of the sanitation engineers with the garbage robots will have fewer negative effects and many more significant benefits, thereby increasing standard of living.

3 0
3 years ago
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