4. True or false: The contract (a, b) = (5, 0.6) is one of an infinite number...
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4. True or false: The contract
(a,
b) = (−5, 0.6) is one of an infinite number of possible contracts the principal could possibly offer the agent. Under this contract, the agent must pay the principal 5 dollars to get the job. Once he has the job, the agent will earn 60 cents for every dollar of output he generates for the principal.
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