At Tony's Car Wash, a Team of Four Workers Washes

question 186

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.

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