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  3. Study Set
    Microeconomic Theory Basic
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    Exam 16: Asymmetric Information
  5. Question
    Which Contracting Party Gains from the Use of a More
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Which Contracting Party Gains from the Use of a More

Question 17

Question 17

Multiple Choice

Which contracting party gains from the use of a more sophisticated contract?


A) The principal,who offers the contract.
B) The agent,who accepts the contract.
C) Both parties may lose.
D) Both parties gain equally.

Correct Answer:

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