The franchising of fast-food restaurants would be an example of how a private business
A) overcomes product information problems.
B) solves the moral hazard problem in insurance.
C) expands the limits of the Coase theorem.
D) corrects the problem of externalities.

Question

Quizplus · Accepted Answer

The franchising of fast-food restaurants allows for a centralized brand and product information to be disseminated to franchisees. This helps to overcome the problem of product information asymmetry between the franchisor and franchisees.

The Franchising of Fast-Food Restaurants Would Be an Example of How