If a principal and agent enter into a fixed-fee contract where the agent is paid a fixed wage

A large farming operation which uses a potent fertilizer is located up river from a trout farmer. If property rights of the river exist and transactions costs are low, the amount of pollution will be ________

A) efficient only if the trout farmer owns the river B) inefficient if the farming operation owns the river C) efficient if either the farming operation or the trout farmer own the river D) always inefficient

Strategic trade policy might work if

A) trade decisions are made simultaneously by two countries. B) trade decisions are made sequentially by two countries. C) trade decisions entail response by a trading partner. D) trade decisions are made in a random fashion.