Imperfect information is:
A) a failure of regulators to correct the equilibrium price and quantity to their efficient levels.
B) an antitrust violation.
C) the monopoly power gained from one seller having a secret production practice.
D) a market failure that prevents consumers from making rational decisions.

Question

Quizplus · Accepted Answer

Imperfect information refers to a market failure where consumers do not have complete or accurate information about a product or service, leading to irrational or suboptimal decision-making. It is not related to regulators, antitrust violations, or monopoly power.

Imperfect Information Is