________ Means That as a Firm Grows and Adds Personnel

question 22

Multiple Choice

________ means that as a firm grows and adds personnel, the new hires typically do not have the same ownership incentives as the original founders, so the new hires may not be as motivated as the founders to put in long hours or may even try to avoid hard work.

• A) Difficult selection
• B) Adverse hazard
• C) Ethical selection
• D) Productivity hazard
• E) Moral hazard

Analyze the impact of market demand on equilibrium prices and profit maximization in purely competitive markets.

Understand the concept of profit maximization for competitive firms and calculate profit per unit.

Identify how to determine portions of total costs that can be recouped in the short run versus shutting down.

Analyze equilibrium conditions in a purely competitive market.

---

Definitions:

Bonds

Debt securities issued by entities, such as corporations or governments, to raise funds, promising to repay the face value plus interest.