1 Explain the difference between managerial coordination and market coordination.
2 Is the managerial coordination that goes on inside a business firm independent of market forces? Explain your answer.
3 Explain why even conscientious workers will shirk more when the cost of shirking falls.
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4 Illustrate the average-marginal rule in a noncoms setting.
5 “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree? Explain your answer