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Principal-agent model prediction

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Reference no: EM133131614

The principal-agent model's prediction that higher stakes (greater incentives) will lead to higher effort is driven by -

A) The agent's general dislike of work

B) The assumption that the marginal cost of effort is increasing

C) The agent's aversion toward income risk

D) The agent's ambition

Multiple choice. Pls provide explanation

Reference no: EM133131614

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