Multiple Choice
Why is the principal-agent problem less likely when getting a haircut than when getting a car repaired?
A) Haircuts are less expensive than car repairs.
B) There are no hidden actions when getting your hair cut.
C) There are no hidden actions when getting your car repaired.
D) Auto mechanics are less honest than hair stylists.
E) There is no principal-agent relationship in car repair.
Correct Answer:
Verified
Correct Answer:
Verified
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