【单选题】The service life of a washing machine depends on the quality control of the manufactuer. If the manufacturer makes effort e1 to monitor the production process, the probability of breakdown is 1-e1. Th...
A.
Without any guarantee policy, the manufactuer has no incentive to exert effort, so that e1=0
B.
Without any guarantee, there is no market for the washing machine.
C.
If the manufactuer offers a full warranty to consumers, he has incentive to exert the maximum effort level so that e1=1.
D.
Under partial warranty, the manufactuer exerts lower effort than in the case of full warranty.