The market for control of corporations serves to
A) create moral hazard.
B) address the principal-agent problem.
C) add to economies of scale.
D) address the problem of adverse selection.
Question 2
A Prisoners' Dilemma game demonstrates how ____ is often rational for individuals even though ____.
a. the failure to cooperate; cooperation would make everyone worse off
b. the failure to cooperate; cooperation would make everyone better off
c. cooperative behavior; cooperative behavior might make everyone worse off
d. All of the above can be demonstrated with a Prisoners' Dilemma game.
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