In a Nash equilibrium, each player takes the best possible action given the actions of the other players

If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?

A) A fixed fee is paid to the agent. B) A fixed fee is paid to the principal. C) An hourly rate is paid to the agent. D) The agent enjoys a share of the profit.

Society would be better off with more products that create beneficial externalities

a. True b. False Indicate whether the statement is true or false