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We can say that a contract is able to prevent moral hazard when

QueenPinky

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We can say that a contract is able to prevent moral hazard when

We can say that a contract is able to prevent moral hazard when
A) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-averse people.
B) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-loving people.
C) it shifts risk to risk-loving people.
D) it eliminates production inefficiencies due to moral hazard and shifts risk to risk-averse people.

Textbook

Microeconomics

Edition: 8^th

Author: Perloff

Read 183 times

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Dareksupreme

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More solutions for this book are available here

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QueenPinky Author

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5 years ago

Smart ... Thanks!

linlinlin

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this is exactly what I needed

annabananerz

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Thanks for your help!!

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