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 not face any principal-agent problem in performance evaluation.
B) Tony will face more problems in performance evaluation in washing and rinsing than in drying the cars.
C) Tony will face more problems in performance evaluation in drying than in washing and rinsing the cars.
D) Tony will face similar problems in performance evaluation in washing, rinsing, and drying.
E) Tony will not have an incentive to monitor the car wash, as the productivity of the workers is same.
Correct Answer:
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