Consider the following story: coverall, inc., an insurance company, recently moved into the motorcycle insurance market. coverall was concerned that the most likely motorcycle insurance customers are those who ride their motorcycles recklessly, because they would benefit most from insurance coverage. since coverall cannot distinguish perfectly between high-risk and low-risk cyclists, it raised its motorcycle premiums in an effort to account for the reckless riders. the economic problem in this story is known as:

In 2000, campbell soup company launched an ad campaign that showed prepubescent boys offering soup to prepubescent girls. the girls declined because they were concerned about their calorie intake. the boys explained that “lots of campbell’s soups are low in calories,” which made them ok for the girls to eat. the ads were pulled after parents expressed concern. why were parents worried? i

Why would an investor invest in your stocks

About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down. however, by this time, sturdy light had developed a strong brand name and continued to steadily lead the market. which of the following describes this scenario? a. sturdy light was a star that developed into a cash cow. b. sturdy light was a question mark that developed into a star. c. sturdy light was a dog that developed into a question mark. d. sturdy light was a cash cow that developed into a star.