Asymmetric information means that
A) the buyer must have information that the seller does not have.
B) the seller must have information that the buyer does not have.
C) the buyer and seller have the same information.
D) either the buyer has information that the seller does not have or the seller has information that the buyer does not have.
E) None of the above answers are correct.

Question

Quizplus · Accepted Answer

Asymmetric information means that there is an imbalance of information between buyers and sellers, where either the buyer or the seller has information that the other party does not. This can lead to market failure and inefficiencies.

Asymmetric Information Means That