Multiple Choice
Principal-agent problems are less likely to arise
A) if it is easy for principals to know agents' actions and if there is less conflict between their goals
B) if it is difficult for principals to know agents' actions and if there is less conflict between their goals
C) if it is easy for principals to know agents' actions and if there is some difference in their goals
D) if it is difficult for principals to know agents' actions and if there is some difference in their goals
E) if agents have higher incomes
Correct Answer:
Verified
Correct Answer:
Verified
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