Question: 1. *2.4 In the duck-carving example with full information (summarized in the second column of Table 19.1), is a contract efficient if it requires Paula

1. *2.4 In the duck-carving example with full information

(summarized in the second column of Table 19.1), is a contract efficient if it requires Paula to give Arthur a fixed-fee salary of $168 and leaves all the decisions to Arthur? If so, why? If not, what additional steps, if any, can Paula take to ensure that Arthur sells the optimal number of carvings?

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