The Ratchet Effect Arises from the Principal's ______

The ratchet effect arises from the principal's ______.As a result,agents have an incentive _____to.

A) lack of knowledge about workers' true abilities;shirk.
B) desire for the agents to increase productivity;underperform
C) desire for the agents to increase productivity;shirk
D) inability to precommit to a piece rate;underperform
E) lack of knowledge about workers' true abilities;shirk

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