Adverse selection is a a. Pre-contractual problem b. Post ...

[clippers!]

Adverse selection is a
 a. Pre-contractual problem
  b. Post contractual problem
  c. Post firing problem
 d. None of the above

Question 2

If the cost of capital decreased to 1, does the firm invest in the new technology?
 a. Yes because the NPV>0
  b. Yes because the NPV=0
  c. Need information on the marginal benefits and costs
  d. No because the NPV<0

[Meganchabluk]

Answer to Question 1

a

Answer to Question 2

a

[clippers!]

Thanks for the timely response, appreciate it

[amit]

YES! Correct, THANKS for helping me on my review