Ask Question
13 August, 08:39

Asymmetric information occurs when A. people engaging in a transaction are uncertain about future events. B. the information available to the people in a transaction is misleading or incomplete. C. everyone has the same information. D. one person in a transaction has more information than the other.

+2
Answers (1)
  1. 13 August, 11:56
    0
    D. one person in a transaction has more information than the other.

    Explanation:

    Asymmetric information

    It is also referred to as the information failure, it occurs when one of the party during an economic transaction has more material knowledge than the other party.

    For example,

    When the seller of the goods and service have more knowledge than the buyer, but the reverse can also be true, i. e., the buyer having more knowledge.

    In most of the economic transaction, the information asymmetries are observed.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Asymmetric information occurs when A. people engaging in a transaction are uncertain about future events. B. the information available to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers