One reason that lawyers might prefer a contingent contract when representing a plaintiff in a tort case is that
A) lawyers are risk neutral.
B) diversification of many cases allows lawyers to reduce risk.
C) lawyers are typically confident about winning every case.
D) hourly rates for lawyers are usually very low.
B
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Explain how studying for an exam is subject to the law of diminishing marginal productivity
A. The more and more time you devote to studying, the amount of time you have to devote to other things diminishes at the margin. This is true for any activity. That is, all activities are subject to diminishing marginal productivity. B. Assuming you organize your studying reasonably, you will focus on the parts of the text that are most likely to show up on the exam and most likely to raise your grade. As you study less relevant material, your additional time spent studying will yield fewer additional points on the exam. At some point, additional studying can have a negative return. C. The law of diminishing marginal productivity implies that the optimal amount of studying is however many hours will lead to your highest possible score. After this point, your performance falls and you should not study any more. D. The law of diminishing marginal productivity pertains to studying in a group only. If you study with one or two people, your grade will likely improve because they can teach you information you don't know. However, at some point, as you add another person, the grades for everyone decline. References
The distinction between M1 and M2 is based on
a. portability-the ease with which an asset can be moved. b. divisibility-the ease with which an asset can be used to make smaller payments. c. liquidity-the ease with which an asset can be converted into cash. d. storability-how long an asset will retain its value.