Answer:
A. Supplier power is increased, because suppliers will be able to charge higher prices for their inputs
Explanation:
Answer: Option C
Explanation: Moral hazard refers to a situation when an individual starts taking unnecessary avoidable risks, knowing that the potential loss will be bore by someone else.
In the given case right option is C, as the most effective way to avoid moral hazard is to hire those consultants who have a good image in market of not shirking and performing their duties well.
This is an example of insider trading, which is using private company data or information to make improper gains.
