Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).
-Recall the Application.There is asymmetric information in the kiwifruit market because
A) buyers have more information than sellers.
B) sellers have more information than buyers.
C) both the buyers and sellers have complete information.
D) sellers have the same information as the buyers.

Question

Quizplus · Accepted Answer

Asymmetric information refers to a situation where one party in a transaction has more information than the other party. In the kiwifruit market, sellers have more information than buyers about the quality of the fruit they are selling. This is because the sellers are more knowledgeable about the production, storage, and handling of kiwifruit than the buyers. Buyers may not know what to look for when buying kiwifruit or may not have access to information about the quality standards for kiwifruit set by the federal government. Therefore, option B is the correct answer.

Recall the Application About Federal Quality Standards in the Market