Many economists argue that there is imperfect information in the market and that this is a failure of the market mechanism.

Question

Quizplus · Accepted Answer

Imperfect information in the market means that buyers and sellers do not have access to complete information about the goods or services being traded. This can result in market failure as it can lead to inefficient allocation of resources, market power, and adverse selection. Therefore, many economists argue that imperfect information is a failure of the market mechanism.

Many Economists Argue That There Is Imperfect Information in the Market