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Author Question: In the presence of asymmetric information, the only contract that results in production efficiency ... (Read 91 times)

JMatthes

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on: Jul 1, 2018
In the presence of asymmetric information, the only contract that results in production efficiency and no moral hazard is the one in which
 
  A) the agent receives a fixed fee.
  B) the principal receives a fixed rent.
  C) profit is shared.
  D) revenue is shared.

Question 2

Sue offers to pay Al 50 for each painting of his that she sells in her gallery. Each painting sells for 75. The cost to Al of producing each painting is 55. Which of the following statements is TRUE about this contract?
 
  A) This contract is efficient.
  B) This contract maximizes joint profit.
  C) Al will not participate in this contract.
  D) This is a fixed-fee contract.
Microeconomics ¦ Perloff ¦ 8th Edition
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potomatos

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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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JMatthes

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Reply 2 on: Jul 1, 2018
Gracias!

upturnedfurball

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

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