Moral hazard is a a. Pre-contractual problem b. Post ...

[anshika]

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

Question 2

A firm sells 300,00 . units per week. It charges  35 per unit, the average variable costs are  40, and the average costs are  55, the firm should
 a. Shut-down as the firm is making a loss of 15 million per week
  b. Shut-down as the firm cannot cover the variable costs
  c. Both a and b
  d. None of the above

[BUTTHOL369]

Answer to Question 1

b

Answer to Question 2

b

[anshika]

Thanks for the timely response, appreciate it

[mcabuhat]

Gracias!