Which of the Following Are Potential Problems Faced by a Firm

question 18

Multiple Choice

Which of the following are potential problems faced by a firm that wants to provide warranties for its lawnmowers? (Select all that apply.)

• A)A moral hazard problem might arise,in that homeowners may be less careful with the mower,since they can always return it if it breaks.
• B)The warranty may select for homeowners that don't have a lot of mowing to do,or have smooth lawns,because they won't have to pay as much for a warranty.
• C)The warranty will increase demand by assuring customers of the product's quality.
• D)The warranty will reduce demand because only makers of low-quality goods would need to reassure consumers in this way.

---

Definitions:

Intersection

The point at which different categories of identity (e.g., race, gender, sexuality) overlap and influence one's experience and perspective.

NCDA Guideline

Standards or ethical guidelines provided by the National Career Development Association to guide the practice of career development professionals.

Career Consultant

A professional advisor who provides individuals with guidance on career choice, development, and transitions, focusing on aligning their strengths and interests with opportunities.

Career Information

Data and insights about various professions, including job duties, educational requirements, salary ranges, and employment trends, which aid in career planning and decision-making.