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Author Question: Under which one of the following contracts does an agent have the least incentive to behave ... (Read 79 times)

Wadzanai

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on: Jul 1, 2018
Under which one of the following contracts does an agent have the least incentive to behave opportunistically?
 
  A) The agent pays a fixed fee to the principal for the right to all future payoffs.
  B) The agent works for the principal on an hourly basis.
  C) The agent receives a share of the profit.
  D) The agent works for the principal on a per unit basis.

Question 2

Under which one of the following conditions would a lawyer accept a case on a contingent basis?
 
  A) The lawyer is risk averse.
  B) The client is risk loving.
  C) The lawyer has several cases on a contingent basis with payoffs that are not perfectly positively correlated.
  D) The lawyer is more risk averse than the client is.
Microeconomics ¦ Perloff ¦ 8th Edition
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todom5090

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

C


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