Multiple Choice
At Tony's Car Wash, a team of four workers washes and rinses each car by hand, and one worker dries the car by hand.Which of the following is true?
A) Tony will have no principal-agent problems.
B) Tony will have more principal-agent problems in washing and rinsing than in drying the cars.
C) Tony will have more principal-agent problems in drying than in washing and rinsing the cars.
D) Tony will be awash in severe principal-agent problems.
E) Tony will have no incentive to monitor the car wash.
Correct Answer:
Verified
Correct Answer:
Verified
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