To Reduce Agency Costs, Organisations Implement Various Systems and Controls

question 2

Multiple Choice

To reduce agency costs, organisations implement various systems and controls to monitor behavior, including

• A) I and III only
• B) I and II only
• C) II and III only
• D) I, II, and III

---

Definitions:

Product Market

A platform where end products or services are made available to individuals, businesses, and governmental agencies.

Monopsonist

A market condition where there is only one buyer facing many sellers, often leading to lower prices for suppliers.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, holding all other factors constant.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public sector.