If a principal and agent have an efficient contract, then
A) one of them must be more risk-averse than the other.
B) neither can be made better off without harming the other.
C) they must have symmetric information.
D) the principal bears more of the risk.
B
Economics
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The average total cost of production
A) equals total cost of production multiplied by the level of output. B) is the extra cost required to produce one more unit. C) equals the explicit cost of production. D) equals total cost of production divided by the level of output.
Economics
The higher the real interest rate, the ________ investment projects firms can profitably undertake, and the ________ the quantity of loanable funds they will demand
A) more; smaller B) more; greater C) fewer; greater D) fewer; smaller
Economics