25 of 38 Moral hazard in essence is: O A. The risk that an agent, even when behaving in the interest of the principle, may have immoral thoughts and a temptation to pursue illegal activities. O B. The risk that even with optimal contracting, a principle wil have a desire to underpay an agent for their genuine hard work. O C. A situation in which it is economically advantageous to break the law because regulations to the contrary are inadequate. O D. A situation that arises when one agent or actor is partly or fully protected from the negative consequences of their decision which imposes negative externalities on others. Finish attempt nace