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If an agent is risk neutral and a principal is risk averse, which of the following contracts would ...

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If an agent is risk neutral and a principal is risk averse, which of the following contracts would ...

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.

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Microeconomics

Edition: 6^th

Author: Perloff

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Llanis Author

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6 years ago

Good timing, thanks!

zbmallo3

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Thanks

Danivalda

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You make an excellent tutor!

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