Question

If TeleCo were to enter into a strategic alliance with a partner that promised it could deliver a high quality wireless infrastructure when in fact the potential partner had neither the skills nor abilities to provide this infrastructure, TeleCo could be said to be impacted by _____________.

A. adverse selection

B. tacit collusion

C. moral hazard and tacit collusion

D. moral hazard

E. adverse selection and tacit collusion

Answer 1

A, adverse selection

Step-by-step explanation:

In the above question, selecting a company without the right skill and know how to supply the wireless cables and/or even install the cables has impacted the Teleco negatively.

Cheers.