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Author Question: Rental Car Maintenance Why do rental cars require more maintenance in their first 50,000 miles than ... (Read 110 times)

fasfsadfdsfa

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on: Jul 1, 2018
Rental Car Maintenance Why do rental cars require more maintenance in their first 50,000 miles than comparable cars driven by private owners?

Question 2

At the current level of production, if the firm's marginal costs exceeds marginal benefits, then
 a. The company should produce more
  b. The company is maximizing profit at this output
  c. The company is producing too much
  d. Not possible to determine


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gstein359

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Reply #1 on: Jul 1, 2018
Answer to Question 1

This is a moral hazard issue. Drivers drive their own cars with more care than they do cars that they are not responsible for once the rental period is over.

Answer to Question 2

c


fasfsadfdsfa

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Reply #2 on: Jul 1, 2018
Thank you


gstein359

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Reply #3 on: Jul 1, 2018
No problemo


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