Instead of Changing the Oil in His Car by Himself,Ashton

question 65

Multiple Choice

Instead of changing the oil in his car by himself,Ashton takes his car to a 10-minute oil change store.Although it's fast and inexpensive,what type of problem might Ashton encounter?

• A) diminishing returns
• B) adverse selection
• C) principal-agent problem
• D) symmetric information
• E) an adverse selection problem that became a principal-agent problem

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