The Surplus

Media Type: TV Clips Topic: Incentives, Opportunity Cost, The Firm

The Office

Oscar delivers news to Michael that the office has a surplus of $4,300 that must be spent immediately or risk losing it since business funds from one year do not carry over to the next. This causes Michael to invent ways to spend the money. In other words, his incentive is to spend regardless if this is the best decision for the entire company.

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