In the presence of asymmetric information, the only contract that results in production efficiency and no moral hazard is the one in which
A) the agent receives a fixed fee.
B) the principal receives a fixed rent.
C) profit is shared.
D) revenue is shared.
B
Economics
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Up to which point will a perfectly competitive firm continue to invest? Explain carefully
What will be an ideal response?
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Which of the following is NOT an example of a negative externality?
a. air pollution from a manufacturing plant. b. disrupted sleep from a neighbor's loud music. c. an illness caused by secondhand cigarette smoke. d. a decrease in your property value from neglecting your lawn and garden.
Economics