Many art galleries keep 60% of the sale price of a painting. However, art galleries do not typically pay the artist while the painting hangs on the wall. This form of contingency contract may be efficient if
A) the artist is less risk averse than the gallery.
B) the gallery is less risk averse than the artist.
C) the artist is unable to diversify across galleries or paintings.
D) the gallery is unable to diversify across artists of paintings.
A
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The "A" in the neoclassical production function incorporates
a. new inventions. b. changes in efficiency. c. more productive capital. d. more efficient labor organization. e. all of the above.
The difference between a specific tariff and an ad valorem tariff is that a specific tariff
a. is a set amount of money per unit of a product, while an ad valorem tariff is a set percentage of product price b. is a set percentage of product price, while an ad valorem tariff is a set amount of money per unit of a product c. names a particular good to which the tariff applies, while an ad valorem tariff applies to large classes of products d. applies only to imports, while an ad valorem tariff applies only to exports e. sets a strict quota limit on the amount one individual can purchase, while an ad valorem tariff sets no such limit