In managerial economics,agency costs refer to

Question

​In managerial economics,agency costs refer to

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Agency costs in managerial economics refer to the costs incurred due to the imperfect alignment of interests between the principal (shareholders) and the agent (management). These costs arise due to information asymmetry, conflicts of interest, and moral hazard. Examples include monitoring costs, incentive costs, and bonding costs. Booking travel arrangements, model and actor representation, and foreign espionage are not directly related to agency costs in managerial economics.

​In Managerial Economics,agency Costs Refer to

In Managerial Economics,agency Costs Refer to