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The owner of a pub hires a bartender. The owner is concerned that the bartender may be giving his friends more beer than they pay

The owner of a pub hires a bartender. The owner is concerned that the bartender may

be giving his friends more beer than they pay for. In response, the owner considers

purchasing surveillance equipment (such as closed-circuit television) and installing it

in the pub in order to monitor the bartender.

(a) Discuss analytically the factors that the owner should consider when she decides

how much to spend on surveillance equipment.

(b) Explain why the owner might also want to change the bartender's compensation

scheme when she purchases surveillance equipment.

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a When deciding how much to spend on surveillance equipment the owner should consider the following factors 1 Costeffectiveness The owner should evalu... blur-text-image

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