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Author Question: If an agent is risk neutral and a principal is risk averse, which of the following contracts would ... (Read 161 times)

bobypop

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on: Jul 1, 2018
If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?
 
  A) A fixed fee is paid to the agent.
  B) A fixed fee is paid to the principal.
  C) An hourly rate is paid to the agent.
  D) The agent enjoys a share of the profit.

Question 2

A contingent contract can create production inefficiency; however, many principals accept this because
 
  A) inefficiency is inevitable.
  B) monitoring is costless.
  C) risk is reduced.
  D) profit will increase as a result.
Microeconomics ¦ Perloff ¦ 8th Edition
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nekcihc358

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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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bobypop

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

xiaomengxian

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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