(Answered) A why do so many shops pay hefty fees for the privilege of

Engineering

a) Why do so many shops pay hefty fees for the privilege of offering customers the choice of paying by credit card?

b) If higher leverage is associated with greater risk, why should anyone worry about deleveraging?

c) What problem associated with asymmetric information was central to the Madoff scandal (investors were misled about the likely returns on their investments)?

d) Under what circumstances would you expect a job applicant to accept an offer of a low base salary and an opportunity to earn commission over one with a higher base salary and no commission potential?

e) Is the internet a solution to asymmetric information problems?

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