Suppose the principal offers to share a percentage of the profit with the agent. Such a contract
A) will yield the same income for the agent as a hire contract would.
B) is incentive compatible.
C) creates a production inefficiency.
D) would not be acceptable to any agent.
B
Economics
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Government-backed deposit insurance increases the ________
A) Willamette torsion effect B) adverse selection problem C) moral hazard problem D) the prudential contagion problem
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