Agency problem and its solutions Introduction Principal-agent relationship occurs when a principal contracts an agent. The principal hires the agent to perform a service for him or to act on his behalf. For example‚ in a large corporation‚ shareholders would hire managers to help them to organize the company in dairy business. However‚ agency problems may arise because of the conflict interest and asymmetry information between principals and agents‚ which lead to agency costs. In this essay‚ I would
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Why Are Gasoline Prices Going Up So High? If everyone else in the world is paying a lot more for gas‚ why shouldn’t Americans? Take your average spoiled American who blames the Arabs for raising the gas prices unfairly in order to make a bigger profit. It’s true‚ gas prices have gone up by a lot in the last few months‚ but is that unfair? Prices still are a lot higher in Canada‚ Europe and just about any other developed nation‚ according to Mike Royko in the May 2‚ 1996 issue of the Chicago
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STOICHIOMETRY OF GASOLINE. AN INTRODUCTION The internal combustion engines burn fuel to create kinetic energy. The burning of fuel is basically the reaction of fuel with oxygen in the air to form water and Carbon dioxide as the major end product . The amount of oxygen present in the cylinder is the limiting factor for the amount of fuel that can be burnt that is to say it determines the level of burning in our combustion engine. If there’s too much fuel present‚ not all fuel will be burnt and un-burnt
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effect of price ceiling and black market in gasoline market. Gasoline market is in equilibrium at a price of $3 per gallon and a quantity of 45 million gallon per month in the United States. Then a war in the Middle East disrupts imports of oil into the United States‚ shifting the supply curve for gasoline from S1 to S2. The price of gasoline begins to rise and consumer protest. The federal government responds by setting a price ceiling of $3 per gallon. A) The effect of imposing price ceiling
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Other solutions are available to reduce the amount of teens undergoing surgery. Most solutions will cause harm to businesses but different people will think otherwise. Some people may think a different solution can make the problem of teens getting plastic surgery stop faster and more efficiently. Several solutions may work‚ but they will not be as effective as setting an age requirement of twenty-one and over. Parents of teenagers or soon to be teenagers could be objectors of this idea. If parents
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Global Warming: A Problem and Solution Essay Over the past years the problem that has most scientist and people in the world concerned is global warming. What leads to global warming is called the green house effect‚ where the atmosphere builds up by gases‚ like methane and carbon dioxide‚ and keeps heat from the sun in the atmosphere‚ which increases the temperature on Earth. Many people think that global warming and the green house effect are the same thing but it is not. The greenhouse
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Cell Phone Problem Solution Essay A serious problem has arisen that desperately needs to be solved. Students have been constantly using their cell phones during class and causing distractions to the learning environment. As a result‚ the principal is ready to ban all cell phones from school. Although this might solve the problem‚ it would alienate and irritate the student body. As it is‚ students are already distracted by cell phone misuse in the classroom. Teachers have found that their classrooms
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Scientists are frenetically searching for the solution to this issue‚ and their outcomes are bleak. They are telling the world that if population growth does not slow‚ the earth will swell to a capacity too large to sustain itself and the conclusion will be apocalyptic. Explanations are numerous‚ however viable solutions are difficult to find. Adherents to the Malthusian theory‚ such as Garrett Hardin‚ author of the article There Is No Global Population Problem‚ believe that this extreme growth in population
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Problem Solution Essay Drug abuse is widespread throughout the world. Every society‚ age‚ social class‚ and family has been affected by drug addiction. The government spends billions of dollars trying to regulate drug use‚ treat addicts‚ and battle drug-related crime. Drugs affect nearly everyone and need to be fought better. Drug abuse causes many struggles for families and communities. Addicts are often too sick‚ to function as normal‚ liable members of a family or of society ("Addiction
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Atsushi Iwatsuki The Solutions for Urbanization Problems There has been urbanization problems in caused by the fact that the economy has grown in urban areas as a result of increasing population dramatically. The problems create several issues in urban areas. On the other hand‚ the concept of sustainable development means that the economy continues to grow while preserving the environment. In this essay I would like to discuss why the current urbanization problems can be solved by the policy
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