« previous next »

Author Question: If a principal and agent enter into a fixed-fee contract where the agent is paid a fixed wage A) ... (Read 78 times)

jho37

  • Hero Member
  • *****
  • Posts: 531
on: Jul 1, 2018
If a principal and agent enter into a fixed-fee contract where the agent is paid a fixed wage
 
  A) the principal bears all the risk.
  B) the agent bears all the risk.
  C) the principal and agent share the risk.
  D) Unable to determine with the information given.

Question 2

If a player has a dominant strategy in a simultaneous-move game, then she is sure to get her best outcome.
 
  Indicate whether the statement is true or false


joshraies

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

False. Suppose player 1 has a dominant strategy in a two-player simultaneous move game. Then player two will choose the best response to that dominant strategy. This may not result in the highest payoff for player 1. The prisoners' dilemma is an example. All we can say for sure is that player 1 will achieve the highest payoff given the strategy of the opponent.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Overview of the cell’s principal chemical building blocks Overview of the cell’s principal chemical building blocks
Dust and dirt in the air are trapped in the air filter so they do not enter the engine. Dust and dirt in the air are trapped in the air filter so they do not enter the engine.
Frontal section through the right side of the skull showing the three principal regions of the ear Frontal section through the right side of the skull showing the three principal regions of the ear
A 31.1-g sample of Ne gas exerts a certain pressure in a container of fixed volume. What mass ... A 31.1-g sample of Ne gas exerts a certain pressure in a container of fixed volume. What mass ...
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
What is the strongest oxidizing agent of the following set: MnCl2, Mn(OH)3, MnO2, KMnO4? What is the strongest oxidizing agent of the following set: MnCl2, Mn(OH)3, MnO2, KMnO4?
Video: Anatomy and Chemical Makeup of a Single Hair (Animation)

For a complete list of videos, visit our video library