In a Very Basic Principal-Agent Model,output Is Contractible If

question 13

Multiple Choice

In a very basic principal-agent model,output is contractible if:

• A)output can be observed with some positive cost.
• B)the employee produces many products.
• C)the employee works in a team.
• D)the employee produces a single output.

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Definitions:

Manufacturer's Liability

The legal responsibility of manufacturers for any harm caused by defects in their products, regardless of negligence.

Breach of Contract

The failure to perform as specified in a contract without lawful excuse, which can give rise to legal action for damages or specific performance.

Emotional Distress

A legal term for the mental anguish or suffering one may experience as a result of another's actions or negligence.

Strictly Liable

Having legal responsibility for damages or loss, regardless of care or intent.