Which One of the Following Best Exemplifies the Principal-Agent Problem

Multiple Choice

Which one of the following best exemplifies the principal-agent problem in the employer-employee relationship?

A) A worker takes 20-minute coffee breaks although the employer allots only 15 minutes for this purpose.
B) A worker is on the job 50 hours per week although only 40 hours are required for promotion.
C) A worker opts for early retirement in response to the firm's incentive plan.
D) A worker's productivity is independent of the wage paid.