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27 July, 00:35

Asymmetric information occurs when the two parties in a market transaction do not have the same amount of information regarding the product or process involved in the transaction. True or False?

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  1. 27 July, 02:48
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    The statement is: True.

    Explanation:

    Asymmetric Information describes a situation in which one party knows more than the other. Also, the information deficiency person could make a different decision if he knew the information had been withheld. Buy-seller negotiations are the most common types of transactions in which asymmetric information affects the result.
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