Final answer:
Monitoring managers can reduce costs associated with state verification when information is scarce.
Step-by-step explanation:
True. Monitoring managers can help reduce the costs associated with state verification when information is scarce. State verification refers to the process of verifying or checking the accuracy of financial or operational information provided by a company. When information is scarce, monitoring managers becomes crucial to ensure that the information is reliable. By closely monitoring managers, businesses can enhance accountability and reduce the risks of misreporting or fraudulent activities, which can lead to significant costs associated with state verification.
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