Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Agency costs arise whenever economic agents enter into a contract in a world of incomplete information.
B) Monitoring costs are part of overall agency costs.
C) The more difficult and costly it is to collect information, the more likely it is that contracts will be broken.
D) Agency costs arise whenever economic agents enter into a contract in a world of incomplete information, monitoring costs are part of overall agency costs and the more difficult and costly it is to collect information, the more likely it is that contracts will be broken.