-A market equilibrium with symmetric information is efficient because
A) low-quality goods are not sold.
B) consumers pay higher prices for lemons.
C) sellers only offer high-quality goods.
D) the goods go to the people who value them the most.

Question

-A market equilibrium with symmetric information is efficient because
A) low-quality goods are not sold. 
B) consumers pay higher prices for lemons. 
C) sellers only offer high-quality goods. 
D) the goods go to the people who value them the most.

Quizplus · Accepted Answer

In a market equilibrium with symmetric information, efficiency is achieved because all parties have equal knowledge, allowing goods to be allocated to those who value them the most, maximizing utility and welfare in the market.

-A Market Equilibrium with Symmetric Information Is Efficient Because