Why is normal profit an opportunity cost?
What will be an ideal response?
Question 2
In markets with asymmetric information
A) asymmetric information causes moral hazard and then it causes adverse selection.
B) moral hazard causes adverse selection which in turn causes asymmetric information.
C) asymmetric information causes adverse selection and then it causes moral hazard.
D) adverse selection causes moral hazard which in turn causes asymmetric information.