The conflict between the Vice President of Marketing and her ...

[kwoodring]

The conflict between the Vice President of Marketing and her sales staff arises because
 a. the sales staff are unwilling to offer discounts
  b. the Vice President does not want to negotiate aggressively enough
  c. the sales staff want to negotiate too aggressively
  d. the Vice President is less willing to offer discounts to make the sale

Question 2

Moral hazard and adverse selection are both examples of
 a. the principal-agent problem.
  b. externalities in consumption.
  c. efficiency in markets.
  d. perfect information.
  e. asymmetric information.

[Rilsmarie951]

Answer to Question 1

d

Answer to Question 2

E