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Economics (AS & A Level) · Oct / Nov 2024 · Paper 31 · Question 9

9708Growth and survival of firms

What is likely to have its cause in the separation of ownership and control in a firm?

  1. Acontestable markets
  2. Bdiseconomies of scale
  3. Cprincipal-agent problem
  4. Dprisoner's dilemma

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Correct answer: C. principal-agent problem

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