Question: Zhihua and Pu are partners in a store in which

Zhihua and Pu are partners in a store in which they do all the work. They split the store’s business profit equally (ignoring the opportunity cost of their own time in calculating this profit). Does their business profit-sharing contract give them an incentive to maximize their joint economic profit if neither can force the other to work?


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  • CreatedNovember 13, 2014
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