This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If an agent is risk neutral and a principal is risk averse, which of the following contracts would ... (Read 197 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
on: Jul 1, 2018
If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?
 
  A) A fixed fee is paid to the agent.
  B) A fixed fee is paid to the principal.
  C) An hourly rate is paid to the agent.
  D) The agent enjoys a share of the profit.

Question 2

A contingent contract can create production inefficiency; however, many principals accept this because
 
  A) inefficiency is inevitable.
  B) monitoring is costless.
  C) risk is reduced.
  D) profit will increase as a result.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nekcihc358

  • Sr. Member
  • ****
  • Posts: 327
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.
Answer Preview
Only 56% of students answer this correctly


bobypop

  • Member
  • Posts: 539
Reply 2 on: Jul 1, 2018
Wow, this really help

AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

These species are all at risk of extinction. Species with “slow” life-h These species are all at risk of extinction. Species with “slow” life-h
Physical Fitness and Cancer Risk Physical Fitness and Cancer Risk
Dual Systems Model of Risk-Taking Dual Systems Model of Risk-Taking
Risk Factors for NSAID-Induced Gastrointestinal Ulcers Risk Factors for NSAID-Induced Gastrointestinal Ulcers
Summary of Functions of Principal Parts of the Brain Summary of Functions of Principal Parts of the Brain
Maternal age is the major risk factor for autosomal trisomies of all types. By age 42, about one in Maternal age is the major risk factor for autosomal trisomies of all types. By age 42, about one in
Video: Photosynthesis and Van Helmont Experiment

For a complete list of videos, visit our video library