Management Question
| Style | APA |
| Number of words | 941 |
| Number of sources | 0 |
| Spacing | Double |
| PowerPoint slides | 0 |
Part 1:
Read a topic from Chapter 19 and Chapter 20 and write a summary on it.
Also, provide a graduate-level response to each of the following questions:
A colleague tells you that he can get a business loan from the bank, but the rates seem very high for what your colleague considers a low-risk loan. Give an adverse selection explanation for this, and offer advice to your friend on how to solve the problem. Give a moral hazard explanation for this, and offer advice
Part 1 needs to be 500 plus words and APA format (refer to chapter 19 and chapter 20 from the Managerial Economics textbook)
Part 2:
Describe an adverse selection problem a company is facing. What is the source of the asymmetric information? Who is the less informed party? What transactions are not being consummated as a result of the information? Could you (or do you) use signaling or screening to consummate these transactions? Offer your company some sound advice, complete with computations of the attendant profit consequences.
Please answer part 2 from a manager’s point of view, part 2 should be 1.5 – 2 pages APA format. Site all the references used. At least one scholarly journal related to economics/organizational behavior should be used along with the textbook.
Part 2 needs to be 1.5 – 2 pages and APA format (Attached Managerial Economics textbook – refer chapter 19 and chapter 20)
Requirements: Part 1 (500+ words) Part 2 (1.5 – 2 pages)
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