A chemical factory has full information regarding the risks of a product but continues to sell it. This is possible because of:

CA Foundation · Business Economics · MTP · September 2024
A chemical factory has full information regarding the risks of a product but continues to sell it. This is possible because of:
(A) A. moral hazard
(B) B. Free riding
(C) C. asymmetric information
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. asymmetric information

Topics: Public Finance

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