Question: 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

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.

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