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Author Question: In a principal-agent problem, if the contract implies that the more risk-averse agent will bear less ... (Read 141 times)

Jipu 123

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on: Jul 1, 2018
In a principal-agent problem, if the contract implies that the more risk-averse agent will bear less risk, we can say that this contract exhibits
 
  A) efficiency in risk-bearing.
  B) risk sharing is not optimal because the less risk-averse (or risk-neutral) agent should bear none of the risk.
  C) risk sharing is not optimal because all risk should be transferred to the most risk-averse agent.
  D) risk sharing is not optimal because risk-neutral agents should face no risk.

Question 2

The situation in which one firm can produce the total output of the market at lower cost than several firms is called a
 
  A) natural monopoly.
  B) pure monopoly.
  C) ruling monopoly.
  D) cost monopoly.
Microeconomics ¦ Perloff ¦ 8th Edition
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zoeyesther

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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.
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Jipu 123

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Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

momolu

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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