« previous next »

Author Question: Under which one of the following contracts does an agent have the least incentive to behave ... (Read 80 times)

Wadzanai

  • Hero Member
  • *****
  • Posts: 528
on: Jul 1, 2018
Under which one of the following contracts does an agent have the least incentive to behave opportunistically?
 
  A) The agent pays a fixed fee to the principal for the right to all future payoffs.
  B) The agent works for the principal on an hourly basis.
  C) The agent receives a share of the profit.
  D) The agent works for the principal on a per unit basis.

Question 2

Under which one of the following conditions would a lawyer accept a case on a contingent basis?
 
  A) The lawyer is risk averse.
  B) The client is risk loving.
  C) The lawyer has several cases on a contingent basis with payoffs that are not perfectly positively correlated.
  D) The lawyer is more risk averse than the client is.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


todom5090

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Diagram of the life cycle of Plasmodium falciparum, the causative agent of malaria Diagram of the life cycle of Plasmodium falciparum, the causative agent of malaria
A, An incentive spirometer. A, An incentive spirometer.
B, The nurse teaches the postoperative client to use an incentive spirometer to expand the lungs. B, The nurse teaches the postoperative client to use an incentive spirometer to expand the lungs.
A typical reaction in which NAD+ acts as an oxidizing agent A typical reaction in which NAD+ acts as an oxidizing agent
Work is done by an external agent Work is done by an external agent
Conversion of guanine to 6-ethylguanine by the alkylating agent ethylmethane sulfonate (EMS) Conversion of guanine to 6-ethylguanine by the alkylating agent ethylmethane sulfonate (EMS)
Video: How proteins function? How do proteins work?

For a complete list of videos, visit our video library