When there are many thousands of small stockholders in a company, for each the cost of monitoring manager performance is well __________ the benefits of doing so, which helps __________ the manager-stockholder problem.
A) above; alleviates
B) above; brings on
C) below; alleviates
D) below; brings on

Question

Quizplus · Accepted Answer

When the cost of monitoring is above the benefits, it discourages stockholders from monitoring, which exacerbates or "brings on" the manager-stockholder problem.

When There Are Many Thousands of Small Stockholders in a Company