Markets are not able to handle information asymmetries and will break down when they exist.

Name: Markets are not able to handle information asymmetries and will break down when they exist.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Markets have developed various mechanisms to handle information asymmetry such as reputation, certification, warranties, and the use of intermediaries. While these mechanisms may not be perfect, they allow markets to function even when information asymmetry exists.

Markets Are Not Able to Handle Information Asymmetries and Will