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Market failure will most likely arise from poor information when the product is
A) a repeat-purchase item.
B) easily evaluated on inspection.
C) often purchased from the same seller.
D) unlikely to be purchased from the same seller in the future.
Market Failure
A scenario where goods and services distributed by an unrestricted market fail to achieve efficiency, frequently making a case for governmental involvement.
Poor Information
A situation where individuals or entities make decisions based on incomplete, inaccurate, or misleading information.
Repeat-purchase Item
A product or service that is bought by consumers on a regular basis due to its continuing need or satisfaction.
- Learn about the ways in which not having complete information can alter market dynamics.
- Understand the causes of market failure attributed to inadequate information.
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Learning Objectives
- Learn about the ways in which not having complete information can alter market dynamics.
- Understand the causes of market failure attributed to inadequate information.
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