If information is more costly and less easily available, then usually this
A) makes markets more efficient.
B) makes markets less efficient.
C) decreases profit opportunities.
D) decreases the opportunity cost of acquiring more information.

Question

Quizplus · Accepted Answer

When information is more costly and less accessible, it can lead to asymmetries in the market, where not all participants have the same information. This can make markets less efficient because not all market participants can make informed decisions, potentially leading to mispriced assets and less optimal allocation of resources.

If Information Is More Costly and Less Easily Available, Then