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.
E) None of the given Answers.
Correct Answer:
Verified
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