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

Author Question: In a principal-agent problem, if the contract used leads to the maximum of the principal's and ... (Read 89 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
on: Jul 1, 2018
In a principal-agent problem, if the contract used leads to the maximum of the principal's and agent's combined value (profits, payoffs), we can say that this contract features
 
  A) inefficiency in production, since only the principal's profits should be maximized.
  B) inefficiency in production, since only the agent's payoffs should be maximized.
  C) efficiency in production.
  D) inefficiency in production, since the agent's payoffs should be maximized and the principal's profits should be minimized.

Question 2

In the presence of asymmetric information, a piece-rate contract
 
  A) achieves production efficiency.
  B) can lead to agents producing more output than would occur under a fixed-rent-paid-to-the-principal contract.
  C) is impossible to write.
  D) will result in the principal earning all of the profit.
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

zenzy

  • Sr. Member
  • ****
  • Posts: 336
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
YES! Correct, THANKS for helping me on my review

amandalm

  • Member
  • Posts: 306
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Varicosis. (a) Varicose veins develop due to the failure of valves in the superficial veins of the l Varicosis. (a) Varicose veins develop due to the failure of valves in the superficial veins of the l
Cards Used in a Socially Situated Version of the Problem-Solving Test Cards Used in a Socially Situated Version of the Problem-Solving Test
How to solve a linear algebraic mixture problem with two unknowns How to solve a linear algebraic mixture problem with two unknowns
Identification of the numbers in the Word Problem Identification of the numbers in the Word Problem
Identification of the numbers in the Word Problem Identification of the numbers in the Word Problem
Physics - Problem Set Physics - Problem Set
Video: Dissociative Disorders (Part 2)

For a complete list of videos, visit our video library