« previous next »

Author Question: Production inefficiency is most likely to occur when the principal has more information about work ... (Read 74 times)

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
on: Jul 1, 2018
Production inefficiency is most likely to occur when the principal has more information about work performance than the agent does.
 
  Indicate whether the statement is true or false

Question 2

An efficient contract is an agreement in which
 
  A) neither party can be made better off without harming the other party.
  B) both parties agree on its clauses.
  C) one party takes all.
  D) both parties agree to always do their best.


Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jul 1, 2018
Answer to Question 1

False. It is when the agent has more information that production inefficiency is more likely to occur. The agent is able to shirk without being detected by the principal.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
Reply #2 on: Jul 1, 2018
Thank you


Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jul 1, 2018
No problemo


« previous next »
 

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Systême silurien du centre de la Bohême / par Joachim Barrande Systême silurien du centre de la Bohême / par Joachim Barrande
Oil and Natural Gas Production from More Wells in Smaller Areas Oil and Natural Gas Production from More Wells in Smaller Areas
Shortly after his death, George Washington had already become myth—part Moses, part angel—in this wo Shortly after his death, George Washington had already become myth—part Moses, part angel—in this wo
Great Britain Production of Glass 1800s Great Britain Production of Glass 1800s
Work of Running Water Work of Running Water
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Video: Origin of organelles Animation

For a complete list of videos, visit our video library