« previous next »

Author Question: Many art galleries keep 60 of the sale price of a painting. However, art galleries do not typically ... (Read 99 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
on: Jul 1, 2018
Many art galleries keep 60 of the sale price of a painting. However, art galleries do not typically pay the artist while the painting hangs on the wall. This form of contingency contract may be efficient if
 
  A) the artist is less risk averse than the gallery.
  B) the gallery is less risk averse than the artist.
  C) the artist is unable to diversify across galleries or paintings.
  D) the gallery is unable to diversify across artists of paintings.

Question 2

Assume a lawyer signs a contingency fee contract with a plaintiff. The case ends up settling for 1 million, of which the plaintiff received 800,000. It is obvious this contract was efficient.
 
  A) True, the plaintiff received some money.
  B) False, it is not clear whether another lawyer would have settled for more.
  C) False, it is not clear whether the plaintiff's lawyer is very smart.
  D) True, the plaintiff and lawyer reached an agreement and both lived up to their end of the agreement.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


tashiedavis420

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

The term wasp is typically defined as any insect of the order Hymenoptera and suborder Apocrita that The term wasp is typically defined as any insect of the order Hymenoptera and suborder Apocrita that
Hip Typically occurs as a result of a fall; with osteoporosis, hip fractures can occur as a result o Hip Typically occurs as a result of a fall; with osteoporosis, hip fractures can occur as a result o
Diagram of a section of a 15th-century oil painting Diagram of a section of a 15th-century oil painting
Painting Painting
Harry and Gus fish the same lake together from the same boat. Each morning Harry typically ... Harry and Gus fish the same lake together from the same boat. Each morning Harry typically ...
Video: Cardiac Cycle (Part 2 of 4)

For a complete list of videos, visit our video library