In the Presence of Asymmetric Information, a Piece-Rate Contract

Multiple Choice

In the presence of asymmetric information, a piece-rate contract

A) is not as good as a contract based on commissions.
B) can lead to agents producing more output than would occur under a fixed-rent-paid-to-the-principal contract.
C) is impossible to write.
D) will result in the principal earning all of the profit.