Question: Consider Devi a newly employed worker in a chocolate factory who has a performance meeting with the Floor Manager. They agree on a performance contract

Consider Devi a newly employed worker in a chocolate factory who has a performance meeting with the Floor Manager. They agree on a performance contract that sets Devi's weekly output to a minimum of 50,000 cherry-covered chocolates.

Will this performance agreement between Devi and the Floor Manager give rise to agency theory? Why or why not?

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