Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 1
9708Growth and survival of firms
What is likely to lead to the principal-agent problem?
- Aa manager of a business makes decisions on behalf of the owner
- Bmusic festival tickets are purchased by a person who intends to sell them at a large profit
- Cthe government is the only buyer of a pharmaceutical product
- Dthere is only one firm that manufactures the product
As printed in the paper
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Correct answer: A. a manager of a business makes decisions on behalf of the owner
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