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One possible solution to an incentive problem arising under unobservable actions is: Question 5 options: A) to sell the agent the right to the total
One possible solution to an incentive problem arising under unobservable actions is:
Question 5 options:
A)
to sell the agent the right to the total production.
B)
to be the boss and fire the inefficient worker and send a signal to others.
C)
to buy the agent's right to his total output.
D)
to pay more and make the worker efficient.
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