Market failure will most likely arise from poor information when the product is
A) a repeat-purchase item.
B) easily evaluated on inspection.
C) often purchased from the same seller.
D) unlikely to be purchased from the same seller in the future.

Question

Quizplus · Accepted Answer

Market failure due to poor information is more likely when consumers do not have the opportunity to learn from repeat purchases or seller reputation, as is the case when a product is unlikely to be purchased from the same seller in the future.

Market Failure Will Most Likely Arise from Poor Information When