Question: 1) What is the difference between a normal profit and an economic profit? 2) What is an incentive system? 3) What is the principal-agent problem

1) What is the difference between a normal profit and an economic profit?

2) What is an incentive system?

3) What is the principal-agent problem as applied to corporations? What are the three major ways that corporations can cope with the principal-agent problem?

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The difference between a normal profit and an economic profit lies in how costs are calculated Normal profit is the minimum level of profit necessary ... View full answer

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