In a market with asymmetric information,________.
A) people tend to overuse a resource is such a way that it gets exhausted
B) people with an informational disadvantage experience positive externalities
C) buyers and sellers have different information about the good being traded
D) sellers have very low bargaining power

Question

Quizplus · Accepted Answer

In a market with asymmetric information, buyers and sellers have different information about the good being traded. This can lead to market failure, as one party may exploit the other due to their lack of information.

In a Market with Asymmetric Information,________