If information is more costly and less easily available, then usually this

A) makes markets more efficient.
B) makes markets less efficient.
C) decreases profit opportunities.
D) decreases the opportunity cost of acquiring more information.

Question

Mrunali Chaudhary · Accepted Answer

Final Answer : B, Explanation :  When information is more costly and less accessible, it can lead to asymmetries in the market, where not all participants have the same information. This can make markets less efficient because not all market participants can make informed decisions, potentially leading to mispriced assets and less optimal allocation of resources.

If information is more costly and less easily available, then usually this

A) makes markets more efficient.
B) makes markets less efficient.
C) decreases profit opportunities.
D) decreases the opportunity cost of acquiring more information.

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Learning Objectives

Learning Objectives

Related questions

If information is more costly and less easily available, then usually thisA) makes markets more efficient.B) makes markets less efficient.C) decreases profit opportunities.D) decreases the opportunity cost of acquiring more information.

Definitions

Learning Objectives

Learning Objectives

Related questions

If information is more costly and less easily available, then usually this

A) makes markets more efficient.
B) makes markets less efficient.
C) decreases profit opportunities.
D) decreases the opportunity cost of acquiring more information.