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Llanis Llanis
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6 years ago
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.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
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ChronosChronos
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6 years ago
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