In markets with imperfect information
A) buyers and sellers will use resources to acquire information before making decisions.
B) buyers will use resources to acquire information before making a decision, but sellers do not need to acquire additional information before making a decision.
C) sellers will use resources to acquire information before making a decision, but buyers do not need to acquire additional information before making a decision.
D) neither buyers nor sellers will be able to acquire information in order to make decisions.

Question

Quizplus · Accepted Answer

In markets with imperfect information, both buyers and sellers are uncertain about the true value of the product being sold. Therefore, to make informed decisions, they will need to use resources to acquire information. This will involve researching product specifications, reading reviews, consulting with experts, and so on. The aim is to reduce the level of uncertainty and increase confidence in the decisions being made. As such, option A is the best choice as it correctly identifies that both buyers and sellers need to acquire information before making decisions.

In Markets with Imperfect Information