At Tony's Car Wash, a team of four workers washes and rinses each ...

[bio_gurl]

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.

Question 2

Which of the following characterizes a perfectly competitive market?
 a. a few firms fiercely competing by slashing prices
  b. product differentiation through aggressive advertising
  c. perfect information
  d. limited resource mobility
  e. barriers to entry such as licenses

[abctaiwan]

Answer to Question 1

B

Answer to Question 2

C