The Optimal Amount of Shirking or Opportunistic Behavior by an Agent

question 31

Multiple Choice

The optimal amount of shirking or opportunistic behavior by an agent:

• A) can be determined apriori.
• B) is less than zero.
• C) is zero.
• D) is greater than zero.

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Definitions:

Offer Agreement

A detailed proposal by one party to enter into a contract, subject to acceptance by another party.

Adhesion Contract

A standardized contract prepared by one party, with little to no negotiation allowed, often in situations with unequal bargaining power.

Definite Offer

An offer that is clear, specific, and leaves no room for negotiation, often containing all the terms necessary for an enforceable agreement.

Definite Acceptance

Definite Acceptance refers to an unambiguous agreement by the offeree to meet the terms of the offer, forming a binding contract.