qthe muffler on your car suddenly needs repair


Q. The muffler on your car suddenly needs repair; also there are only two automobile repair shops in town. You drive to the first shop, also the mechanic tells you to leave the car also he will repair it. Payment will be due whenever you pick it up. A mechanic at the second shop looks at your car also guarantees that she will charge you only $99.95 to repair the muffler as advertises. Explain which repair shop is likely to provide costly needless repairs to your car, also why? Which one may under present quality? Describe concepts of prospective also retrospective payment for services. In your answers.

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