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In a linear contract between a risk neutral firm and a risk averse agent: (5 marks) (a) Fully explain the role of the agent's net
In a linear contract between a risk neutral firm and a risk averse agent:
(5 marks) (a) Fully explain the role of the agent's net benefit (NB) in the optimization of total value in the contract.
(5 marks) (b) Which party does the total value maximization in the "firm-agent" contract and why?
(5 marks) (c) If this agent is assigned more than one task in this contract, fully explain what happens to total value and why
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