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    Microeconomics Study Set 40
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    Exam 20: Uncertainty, Risk, and Private Information
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    McDonald's and Other Fast-Food Chains Rely Mainly on Franchisees to Operate
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McDonald's and Other Fast-Food Chains Rely Mainly on Franchisees to Operate

Question 4

Question 4

Multiple Choice

McDonald's and other fast-food chains rely mainly on franchisees to operate their own restaurants to avoid the problem of:


A) adverse selection.
B) moral hazard.
C) insurance.
D) deductibles.

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