Many art galleries keep 60% of the sale price of a painting. However, art galleries do not typically pay the artist while the painting hangs on the wall. This form of contingency contract may be efficient if
A) the artist is less risk averse than the gallery.
B) the gallery is less risk averse than the artist.
C) the artist is unable to diversify across galleries or paintings.
D) the gallery is unable to diversify across artists of paintings.
A
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Which of the following is true ofthe Food, Conservation, and Energy Act of 2008?
a. It continued the subsidies tied to farm prices that comprised the major share of transfers to farmers. b. The act provided support for the development of bio-fuelsintended to supplement gasoline for automobiles.c. It continued large subsidies to American farmers, which makes the US very different from most industrialized nations, which offer few agricultural subsidies and whose farmers operatein a competitive market. d. It drastically reduced both direct subsidies and subsidies tied to farm prices.
Cartel members have a collective interest in ____ industry price and a private interest in ____ their own prices
a. increasing; increasing b. increasing; decreasing c. decreasing; increasing d. decreasing; decreasing