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.
B
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Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility frontier
A) shifting inward. B) becoming flatter. C) shifting outward. D) becoming steeper.
As the number of players grows, the costs of game playing fall
Indicate whether the statement is true or false
The opportunity cost of producing a dining room table refers to the
a. quantity of money required to produce the table b. quantity of money required to buy the table c. quantity of other goods that must be given up to produce the table d. quality of the table e. use of lumber to produce the table
Use the above figure. At an output equal to "Q" the total cost for the firm will be the area
A. OQEB. B. OQBC. C. OQDC. D. OQFA.