Provide a \"realistic\" example of an Agency Cost and how it might be eliminated

Question

Provide a "realistic" example of an Agency Cost and how it might be eliminated.  If you can't think of one, use the following:

Employees at the Jackson Hole Corporation typically take 45 minutes for lunch when the allocated time is only 30 minutes. Employees are encouraged to eat at the company cafeteria located in the middle of the company facilities. Most employees choose to eat their lunch in the cafeteria. Is there an agency cost here? If so, how can management eliminate or reduce this agency cost?

Construct an example of the cycle of money, identify all the players involved, and identify their individual benefits from participating in the cycle of money.

Explanation / Answer

yes there is an agency ccost of 15 min

this can be reduced by allocating different lunch schedules span of 30 min from 12:00pm to 2:00pm

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