An efficient market is characterized by the fact that
A) output is steady or growing and there is low inflation.
B) profit opportunities are eliminated almost instantaneously.
C) there are no opportunity costs.
D) wealth is distributed fairly.

Question

Quizplus · Accepted Answer

In an efficient market, prices reflect all available information, so profit opportunities from undervalued or overvalued assets are quickly exploited by traders and corrected, making these opportunities disappear almost instantaneously.

An Efficient Market Is Characterized by the Fact That