The optimal amount of shirking or opportunistic behavior by an agent:
A) can be determined apriori.
B) is less than zero.
C) is zero.
D) is greater than zero.

Question

Quizplus · Accepted Answer

The optimal amount of shirking or opportunistic behavior by an agent is greater than zero. This is because complete effort or honesty can lead to burnout or missed opportunities, respectively. However, too much shirking or opportunistic behavior can lead to negative consequences such as loss of trust or termination of employment. Therefore, the optimal amount is somewhere in-between zero and a fully opportunistic behavior.

The Optimal Amount of Shirking or Opportunistic Behavior by an Agent