A-LevelEconomicsThe price system and the microeconomy9708/32 · May/June 2020 · Q101 Mark

When will the 'principal-agent' problem occur? A when managers are not allowed to become shareholders B when members of a cartel collude to gain higher profit C when one firm dominates the market D when owners have different objectives to managers

(a)When will the 'principal-agent' problem occur? A when managers are not allowed to become shareholders B when members of a cartel collude to gain higher profit C when one firm dominates the market D when owners have different objectives to managers[1]

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, May/June 2020 Paper 3 Variant 2, question 10.

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