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

Question

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The incident is an example of lack of perfect information in the financial markets, as investors did not have all the information regarding the health risks associated with excessive chocolate consumption by children. This lack of information led to an unexpected collapse in sales and subsequently the company's bankruptcy and bond defaults.

The Company That Manufactures Screaming Chocolate Zonkers Breakfast Cereal Finds