In which of the situations described below is the principal-agent problem least likely to occur?

Question

Quizplus · Accepted Answer

The principal-agent problem is least likely to occur when the interests of the principal and agent are aligned or when the agent's actions are easily observable. In the case of a bartender serving an individual at a bar, the service is straightforward, and the customer can directly observe the bartender's actions, reducing the likelihood of a principal-agent problem.

In Which of the Situations Described Below Is the Principal-Agent