Which of the following is an example of a principal$-$agent problem? Shareholders hire a CEO to increase profits, and the CEO remodels the office with expensive artwork and furn $$ Buyers opt to buy the low$-$cost$,$ low$-$quality version of a product even though they say their primary goal is hig Workers are motivated to do their best on the job regardless of compensation. A firm fails to earn profits because a manager mismanages the employees.