Author Question: Many art galleries keep 60 of the sale price of a painting. However, art galleries do not typically ... (Read 183 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
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.


tashiedavis420

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

A

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

For a complete list of videos, visit our video library