________ Is One of the Solution to the Agency Problem

question 124

Multiple Choice

________ is one of the solution to the agency problem in publicly-held corporations.

• A) Stock options
• B) Stock split
• C) Demotion of employee designation
• D) Distribution of dividends

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Definitions:

Minimum Long-Run ATC

The lowest point on the Average Total Cost curve when a firm operates in an efficient scale over the long term.

Increasing-Cost Industry

An industry in which production costs increase as industry output expands, often due to resource limitations or higher input costs.

Constant-Cost Industry

An industry where the input prices do not change as the industry output changes.

Decreasing-Cost Industry

An industry where average costs decrease as the industry's output increases, often due to economies of scale.