Author Question: Adverse selection is a a. Pre-contractual problem b. Post contractual problem c. Post firing ... (Read 259 times)

clippers! · **on:** Jul 1, 2018

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