A risk averse person will always buy insurance against risk

What is the formula for calculating average fixed cost? If a firm has fixed costs of $8,500 per month and produces 1,900 units of output per month, what is its average fixed cost?

What will be an ideal response?

Which contracting party gains from the use of a more sophisticated contract?

a. The principal, who offers the contract. b. The agent, who accepts the contract. c. Both parties may lose. d. Both parties gain equally.