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1. (Signaling) Give an example of signaling in each of the following situations:

a. Choosing a doctor
b. Applying to graduate school
c. Filling out a form for a dating service

2. (C a s e S tudy: The Reputation of a Big Mac) Explain how the time and financial requirements involved in obtaining a McDonald's franchise relate to the hidden- characteristics problem.Why would existing franchise owners have an interest in the maintenance of high application standards for new franchise owners?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91719835

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