15. An author has signed a contract in which the publisher promises to pay her $10,000 plus 20 percent of gross receipts from the sale of her book. True or false: If both the publisher and the author care only about their own financial return from the project, then the author will prefer a higher book price than will the publisher.

16. A film director has signed a contract in which the production studio promises to pay her

$1,000,000 plus 5 percent of the studio’s rental revenues from the film, all of whose costs of production and distribution are fixed. True or false: If both the director and the studio care only about their own financial return from the project, then the director will prefer a lower film rental price than will the studio.