A buyer and a seller equally aware of market conditions enter into a contract to exchange a good at some date in the future. If the buyer benefits while the seller loses because the former anticipated the market price more accurately, the seller's loss can be attributed to asymmetric information.
Indicate whether the statement is true or false
Question 2
If the market is unable to allocate resources then
A) there is market failure.
B) there is rent-seeking.
C) there are no free-riders.
D) none of these choices.
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