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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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