If a Firm Has Established Monitoring Devices That Have a 50

question 18

Multiple Choice

If a firm has established monitoring devices that have a 50% chance of detecting shirking,and an employee gains $5,000 from shirking,the employer can deter shirking by having employees post a bond equal to

• A) $2,500.
• B) $5,000.
• C) $10,000.
• D) $50,000.