« previous next »

Author Question: Many art galleries keep 60 of the sale price of a painting. However, art galleries do not typically ... (Read 159 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
on: Jul 1, 2018
Many art galleries keep 60 of the sale price of a painting. However, art galleries do not typically pay the artist while the painting hangs on the wall. This form of contingency contract may be efficient if
 
  A) the artist is less risk averse than the gallery.
  B) the gallery is less risk averse than the artist.
  C) the artist is unable to diversify across galleries or paintings.
  D) the gallery is unable to diversify across artists of paintings.

Question 2

Assume a lawyer signs a contingency fee contract with a plaintiff. The case ends up settling for 1 million, of which the plaintiff received 800,000. It is obvious this contract was efficient.
 
  A) True, the plaintiff received some money.
  B) False, it is not clear whether another lawyer would have settled for more.
  C) False, it is not clear whether the plaintiff's lawyer is very smart.
  D) True, the plaintiff and lawyer reached an agreement and both lived up to their end of the agreement.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


tashiedavis420

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Cave painting from Lascaux Cave painting from Lascaux
The term wasp is typically defined as any insect of the order Hymenoptera and suborder Apocrita that The term wasp is typically defined as any insect of the order Hymenoptera and suborder Apocrita that
One of the best examples of charismatic authority is Joan of Arc. In this painting from the early ... One of the best examples of charismatic authority is Joan of Arc. In this painting from the early ...
Asomatognosia typically involves damage to the right parietal lobe. Asomatognosia typically involves damage to the right parietal lobe.
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Harry and Gus fish the same lake together from the same boat. Each morning Harry typically ... Harry and Gus fish the same lake together from the same boat. Each morning Harry typically ...
Video: New DNA Strand Replication

For a complete list of videos, visit our video library