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Author Question: A key aspect of the principal-agent problem is that A) the principal cannot perfectly monitor the ... (Read 52 times)

SAVANNAHHOOPER23

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on: Jul 1, 2018
A key aspect of the principal-agent problem is that
 
  A) the principal cannot perfectly monitor the agent's actions.
  B) the principal can perfectly monitor the agent's actions.
  C) the output level does not depend on the agent's actions.
  D) the principal is always risk averse.

Question 2

We can say that a contract is able to prevent moral hazard when
 
  A) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-averse people.
  B) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-loving people.
  C) it shifts risk to risk-loving people.
  D) it eliminates production inefficiencies due to moral hazard and shifts risk to risk-averse people.
Microeconomics ¦ Perloff ¦ 8th Edition
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aprice35067

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Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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SAVANNAHHOOPER23

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

chjcharjto14

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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