Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 21, Problem 1MC
To determine
Principal agent relationship.
Expert Solution & Answer
Explanation of Solution
The work is assigned by the laptop owner. Thus, the laptop owner is the principal and the person who gets the job from the principal is an agent. Thus, option ‘c’ is correct.
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Managerial Economics: A Problem Solving Approach
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