Problem
1. (Signaling and Screening)What roles do signaling and screening play in a labor market with asymmetric information?
2. (Case Study: 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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.