"Don't cry over spilled milk"- Evaluate this equation in the light of the concept of "Sunk Cost". As a manager of a large corporation would you evaluate the 'Principal-Agent Problem" by putting yourself 'in the shoes' of the owners of the company? If you are manager of a company which has a lead product that has "unit elasticity" (price elasticity of demand value is 1), then how would you strategize to increase your sales revenue? Will a pricing strategy be more effective or product quality improvement strategy be more effective in sales revenue growth efforts when the product is having unit price elasticity of demand (price elasticity of demand value =1)? Please explain.