Eliminating information asymmetry:
A)should be upheld by law.
B)may not be called for if done by eliminating specialization.
C)can be done costlessly.
D)is always desirable because it lowers transaction costs.

Question

Quizplus · Accepted Answer

Eliminating information asymmetry may not always be called for, as it can be achieved through specialization. Specialization allows individuals or firms to focus on a particular area of expertise, leading to a reduction in information asymmetry. However, specialization may also lead to the development of new information asymmetries between different areas of specialization. Therefore, while eliminating information asymmetry is desirable, it may not always be necessary or cost-effective.

Eliminating Information Asymmetry