An efficient contract is an agreement in which
A) neither party can be made better off without harming the other party.
B) both parties agree on its clauses.
C) one party takes all.
D) both parties agree to always do their best.

Question

Quizplus · Accepted Answer

An efficient contract is one where neither party can be made better off without making the other party worse off, reflecting an optimal allocation of resources where mutual gains are maximized and losses are minimized.

An Efficient Contract Is an Agreement in Which