05. It is 1897, the height of the gold rush, and you are living in Dawson City. While you are using your math skills to make big bucks in the local gambling halls, your old friend Rufus out on Eldorado Creek knows you are trained as an economist. Rufus owns gold claim Number 13 on Eldorado. Not only is 13 an unlucky number, but Rufus has done some mining and Number 13 has not produced much gold. Furthermore, after the starvation, frostbite and bear-mauling he suffered getting to the Klondike, he would prefer to live in Dawson's Monte Carlo Hotel and have someone else do the hard work mining his claim. IINSERT YOUR ANSWER Rufus has written you to say that a guy named Swiftwater Bill proposes to take = lay on ON NEXT PAGE Number 13. This means that Swiftwater Bill will pay Rufus for the right to mine Rufus" claim. Swiftwater Bill proposes to pay $500 per month in rent and keep the gold he finds, YOU MAY WISH TO REFER TO THE if any- SHORT ESSAY TIPS AND SAMPLE ESSAY FROM PREVIOUS Rufus' letter ends as follows: "I have an economics textbook out here on the creeks, but ASSIGNMENT INCLUDED ON LATER we burned most of it to stay warm. The only part left says 'The Principal-Agent model is : PAGES] useful tool to analyze economic relationships with hidden action problems, and provides multiple solutions to the conflicts of interest inherent in such relationships.' What does this mean, do you agree, and what solutions would you suggest? Please write a mini- essay with your answer and send it to me at Number 13 Eldorado."