If a Principal and Agent Have an Efficient Contract, Then

question 77

Multiple Choice

If a principal and agent have an efficient contract, then

• A)one of them must be more risk-averse than the other.
• B)neither can be made better off without harming the other.
• C)they must have symmetric information.
• D)the principal bears more of the risk.

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Definitions:

Abnormal Behavior

Actions, thoughts, or feelings that are considered to deviate significantly from what is considered normal or typical within a culture or society.

Mental Disorder

A condition characterized by disturbances in a person's thoughts, emotions, or behavior, which causes distress or impairs functioning.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsiveness.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, comprising countries with diverse cultures, languages, and histories.