Appendix: Each Partner in a Simple Profit-Sharing Contract That Splits

Multiple Choice

Appendix: Each partner in a simple profit-sharing contract that splits the independently verifiable sales revenue minus unobservable cost has an incentive

A) to reject an automatic renewal of the contract
B) to understate fixed cost
C) to overstate avoidable cost
D) to understate customer loyalty for repeat purchases
E) to renew the partnership contract