Possible results of asymmetric information include all of the following EXCEPT:
A) new sellers will enter the market sensing profit opportunities.
B) less informed buyers will leave the market.
C) mutually beneficial trades may not occur.
D) trades may occur that are not mutually beneficial.

Question

Quizplus · Accepted Answer

Asymmetric information may lead to less informed buyers leaving the market and mutually beneficial trades not occurring or trades occurring that are not mutually beneficial. However, new sellers entering the market sensing profit opportunities is not a direct result of asymmetric information.

Possible Results of Asymmetric Information Include All of the Following