If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?
A) A fixed fee is paid to the agent.
B) A fixed fee is paid to the principal.
C) An hourly rate is paid to the agent.
D) The agent enjoys a share of the profit.
B
Economics
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Everything else held constant, when a country's currency depreciates, its goods abroad become ________ expensive while foreign goods in that country become ________ expensive
A) more; less B) more; more C) less; less D) less; more
Economics
When total revenue minus total economic cost is equal to zero, the firm is
a. earning above-average economic profit. b. earning the normal profit rate. c. losing too much money to stay in business. d. earning abnormally low profits.
Economics