In a Market Where Individuals Are Perfectly Informed

In a market where individuals are perfectly informed:

A) It could be assumed managers would ultimately bear costs associated with bonding and monitoring.
B) There are no monitoring costs as managers will not risk acting in their own self-interests.
C) Managers will receive a higher salary as principals will assume that managers will act opportunistically.
D) Principals will bear the costs of bonding and monitoring so that they can remain informed.