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Svetllana [295]
3 years ago
10

The principal-agent problem arises in labor markets because: Group of answer choices compensating wage differences do not pay fo

r differences in the nonmonetary aspects of jobs. a firm may realize excessively large profits. workers may provide less-than-expected work effort. human capital investments vary among workers.
Business
1 answer:
densk [106]3 years ago
6 0

Answer:

workers may provide less-than-expected work effort.

Explanation:

Principal-agent problem

This is also called Agency problem. It is simply defined as a type of problem of motivating one party that is the agent just to act on behalf of another person which is the principal. This problems arise usually when incentives between the agent and the principal are not perfectly aligned or in tune.

This form of problem is also said to occur when agents example a firm's managers tends to run after their own personal goals rather than the goals of the principals who is the firm's owners.

Agency relationship

This form of relationship is said to occur if there is a set up or an arrangement in where one person's welfare is dependent or based on what another person does.

Agent

This is simply known as an Individual whose services has being employed by a principal so as to help achieve the principal's objective.

Principle

This is also known as a person who simply employs the services of one or more agents so as to obtain or achieve an objective.

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During 2013, Company A has the following transactions involving its common and preferred stock:
Dennis_Churaev [7]

Answer:

Explanation:

Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares

Bank A/c………Dr. 520000

To Share Capital A/c. 160000

To Paid in excess of par 360000

Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share

Bank A/c………Dr. 900000

To Preferred Stock A/c. 600000

To Paid in excess of par. 300000

When the market value of the common stock reached $15 a share, company A declared a 3-for-1 stock split reducing the par value to $188 per share.

Share Capital (par value at 8) 400000

To Share Capital (par value at 2.67)

400000

7 0
3 years ago
The demand for grape-flavored Hubba Bubba bubble gum is likely a. inelastic because there are many close substitutes for grape-f
PolarNik [594]

Answer:

b.

hope this helps.

or maybe not.

3 0
3 years ago
Suppose the working-age population of a fictional economy falls into the following categories:
aniked [119]

Answer:

The right solution is:

(a) 120

(b) 20%

Explanation:

Given that,

Full time employed,

= 75

Part time employed,

= 25

Total unemployed,

= 20

(a)

The total employed will be:

= Full \ time + Part \ time

= 75+25

= 100

Now,

Labor force will be:

= Total \ employed+Total \ unemployed

= 100+20

= 120

(b)

The unemployment rate will be:

= \frac{Total \ unemployment}{Labor \ force}\times 100

= \frac{20}{100}\times  100

= 0.2\times 100

= 20 (%)

6 0
3 years ago
Why did Milan say that he does not like to interview potential employees?
Aneli [31]
It’s the second one,about not being able to see someone’s work-ethic
8 0
3 years ago
In a perfectly competitive​ market, all of the following statements are true​ except: A. Marginal revenue is the same as price.
Rashid [163]

Answer: Marginal revenue is equal to price times quantity

Explanation:

A perfectly competitive market is a market where there's a large number of both the producers and the consumers have full and symmetric information.

In a perfectly competitive​ market, the marginal revenue is the same as price and the marginal revenue curve is the same as the demand curve facing sellers.

It should be noted that the statement that the marginal revenue is equal to price times quantity is incorrect. The total revenue is equal to price times quantity.

6 0
3 years ago
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