Multiple Choice
Under which one of the following contracts does an agent have the least incentive to behave opportunistically?
A) The agent pays a fixed fee to the principal for the right to all future payoffs.
B) The agent works for the principal on an hourly basis.
C) The agent receives a share of the profit.
D) The agent works for the principal on a per unit basis.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: A key aspect of the principal-agent problem
Q13: In a principal-agent problem,if the contract used
Q14: Author A accepts a $5,000 advance and
Q15: Suppose a plaintiff hires a lawyer to
Q16: A firm uses an efficiency wage scheme
Q18: If a firm has established monitoring devices
Q19: Author A accepts a $5,000 advance and
Q20: The type of contract selected depends on
Q21: Under which one of the following conditions
Q22: Which of the following would NOT be