If the agent has more information than the principal and there is ...

[Jkov05]

If the agent has more information than the principal and there is only one state of nature, then
 
  A) efficiency in both production and risk-bearing can be achieved.
  B) only efficiency in production can be achieved.
  C) only efficiency in risk-bearing can be achieved.
  D) neither efficiency in production nor efficiency in risk-bearing can be achieved.

Question 2

For each of the following sets of supply and demand curves, calculate equilibrium price and quantity.
 
  a. QD = 1000 - P; QS = P
  b. QD = 1500 - 2P; QS = 100 + 2P
  c. QD = 2000 - 3P; QS = -300 + 3P

[harveenkau8139]

Answer to Question 1

A

Answer to Question 2

a. Q = 500, P = 500
b. Q = 800, P = 350
c. Q = 850, P = 383.33

[Jkov05]

Excellent

[parker125]

TYSM