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1 explain giving a relevant example what is meant by a

1. Explain, giving a relevant example, what is meant by a principal-agent problem. Be sure to address each of the following:

What is a principal? What is an agent?
In your example, who is the principal? Who is the agent?
What is the problem that arises in your scenario? Is it a problem of information or of action?
Propose a solution to your problem. Do you think your solution is practical?

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