« previous next »

Author Question: Many art galleries keep 60 of the sale price of a painting. However, art galleries do not typically ... (Read 182 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?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Bhimbetka rock painting showing man riding on horse, India Bhimbetka rock painting showing man riding on horse, India
Giorgio Vasari, The Art of Painting. Giorgio Vasari, The Art of Painting.
Diagram of a section of a 15th-century oil painting Diagram of a section of a 15th-century oil painting
People using walkers typically have a high level of mobility impairment. People using walkers typically have a high level of mobility impairment.
Wall Painting In The "Ixion Room," House of the Vettii Wall Painting In The "Ixion Room," House of the Vettii
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ... Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...
Video: Negative Feedback Regulation of Blood Pressure

For a complete list of videos, visit our video library