The Company That Manufactures Screaming Chocolate Zonkers Breakfast Cereal Finds

Multiple Choice

The company that manufactures Screaming Chocolate Zonkers breakfast cereal finds that its sales collapse, it is forced into bankruptcy, and it defaults on its bonds, as a result of an unexpectedly harsh report from the Surgeon General condemning excessive chocolate eating by children. This incident is best thought of as an example of

A) symmetric information in the financial markets.
B) asymmetric information in the financial markets.
C) lack of perfect information in the financial markets.
D) moral hazard in the financial markets.