Marjorie enjoys antique shopping by visiting the estate sales of those who have passed on, where she occasionally finds a rare piece priced at a bargain because the estate's beneficiaries were not aware of its high value. A market failure occurs in this situation due to

Question

Quizplus · Accepted Answer

The situation described involves a mismatch of information, where Marjorie has more knowledge about the true value of the antiques than the sellers do. This information asymmetry leads to a market failure because the items may be sold for less than their true value.

Marjorie Enjoys Antique Shopping by Visiting the Estate Sales of Those