If left alone, the free market will provide sufficient information to potential consumers about goods and services.

Question

Quizplus · Accepted Answer

In many cases, the free market may not provide sufficient information to potential consumers about goods and services due to information asymmetry, where sellers have more information about the product than buyers, and public goods, where information is non-excludable and non-rivalrous, leading to underproduction of information.

If Left Alone, the Free Market Will Provide Sufficient Information