The Principal-Agent Problem Is Less Likely to Occur When Getting

Multiple Choice

The principal-agent problem is less likely to occur when getting a haircut than when getting a car repaired because ____

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.