Question: The text points out that asymmetric information can have deleterious effects on market outcomes. a. Explain how asymmetric information about a hidden action or a

The text points out that asymmetric information can have deleterious effects on market outcomes.
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection.
b. Discuss a few tactics that managers can use to overcome these problems.

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