Asymmetric information is
A) when a market failure occurs.
B) an externality.
C) when the producer has information on the product that the consumer lacks.
D) the regulatory price for a natural monopoly.
Answer: C
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In the Golden Rule steady state, the marginal product of capital is equal to the
A) savings rate plus the population growth rate. B) population growth rate plus the depreciation rate. C) depreciation rate plus the savings rate. D) savings rate divided by the marginal product of labor.
Which of the following is most nearly consistent with Say's law?
A) When a person produces one good, he or she plans to demand other goods. B) When a person produces a good, he or she plans to sell it. C) When a person buys a good, he or she plans to pay for it with money. D) When a person goes to work, he or she plans to produce.