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pirex pirex
wrote...
Posts: 634
6 years ago
In the presence of asymmetric information, production efficiency is assured when the principal and agent share the profit.
True or False? Provide an explanation.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
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wrote...
6 years ago
False. Since the agent faces full marginal cost but receives only a fraction of the marginal benefit, joint profit is not achieved.
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