If the principal has full information, production efficiency without supervision can occur with
A) a fixed-fee rental contract.
B) a profit-sharing contract.
C) an incentive-compatible contract.
D) All of the above.
D
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Advocates of flexible exchange rates claim that under flexible exchange rates, if the central bank faced unemployment
A) and thus wished to decrease its money supply, there would no longer be any legal barrier to the currency depreciation this would cause. B) and thus wished to expand its money supply, there would no longer be any legal barrier to the currency depreciation this would cause. C) and wished to expand its money supply, there would no longer be any legal barrier to the currency appreciation this would cause. D) and wished to decrease its money supply, there now would be a legal barrier to the currency depreciation this would cause. E) and wished to increase output, there would no longer be a legal barrier to the currency appreciation this would cause.
Low wages may be traceable to all of the following except one. Which is the exception?
a. low productivity b. too much saving c. unstable business climate d. poor education and training e. lack of adequate physical capital supplied to labor
Suppose that the current money market equilibrium features an interest rate of 5 percent and a quantity of $2 trillion. If the Fed raises the discount rate, which of the following ismostlikely to be the new money market equilibrium?
a. An interest rate of 6 percent and a quantity of $1.5 trillion. b. An interest rate of 5 percent and a quantity of $2 trillion. c. An interest rate of 4 percent and a quantity of $2.5 trillion. d. None of the above.
The demand curve facing Company ABC is perfectly elastic. What is its marginal revenue?
a. Equal to the average revenue. b. Less than the price. c. Higher than the price. d. Higher than the average revenue.