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Author Question: Profit-sharing contracts are designed to A) mitigate the moral hazard problem. B) be fair with ... (Read 40 times)

mcmcdaniel

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on: Jul 1, 2018
Profit-sharing contracts are designed to
 
  A) mitigate the moral hazard problem.
  B) be fair with the workers.
  C) be used in situations in which shirking is not possible.
  D) All of the above.

Question 2

Shay is risk averse and has a reservation wage of 50. She is offered two different labor contracts. One is a fixed wage of 100 per day, and the other is a piece-rate contract. In the latter, the pay rate is 1 per piece. In a good day she sells 160 units, and in bad day she sells 40 units. The likelihood of a good or a bad day is 50.
 
  A) Shay accepts the fixed wage contract.
  B) Shay declines both contracts.
  C) Shay accepts the piece-rate contract.
  D) Shay is indifferent between both contracts.
Microeconomics ¦ Perloff ¦ 8th Edition
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amcvicar

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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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mcmcdaniel

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Reply 2 on: Jul 1, 2018
Excellent

lindahyatt42

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

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