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Let Be the Manager's Salary in an Owner-Manager Version

Question 2

Multiple Choice

Let Let Be the manager's salary in an owner-manager version of the principal-agent problem.Which of the following is characteristic of a powerful incentive scheme? A) a close to 0 B) a close to 1 C) b close to 0 D) b close to 1 Be the manager's salary in an owner-manager version of the principal-agent problem.Which of the following is characteristic of a "powerful" incentive scheme?


A) a close to 0
B) a close to 1
C) b close to 0
D) b close to 1

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