Refer to the table below and information. The average variable cost of the firm when 5 units of output are produced is:

A contingent contract can create production inefficiency; however, many principals accept this because

A) inefficiency is inevitable. B) monitoring is costless. C) risk is reduced. D) profit will increase as a result.

Two corporations (TruBlu and FlyByNight) issue perpetuities that both pay $1,000 per year, but the market price of the FlyByNight bonds are much lower

The difference in the bond prices may reflect the belief that the bonds issued by FlyByNight are ________ risky when compared to the TruBlu bonds. A) less B) more C) equally D) none of the above