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What are three major ways that corporations can cope with the principal-agent problem?
Diminishing Marginal Utility
See Law of Diminishing Marginal Utility.
Satisfaction
The contentment one feels when one's needs, desires, or expectations are fulfilled or surpassed.
Diminishing Marginal Utility
A principle stating that as a consumer consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.
Supply Curves
Graphical representations that show the relationship between the price of a good and the quantity of the good that producers are willing to supply.
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