Asymmetric information will always cause A) efficiency ...

[vHAUNG6011]

Asymmetric information will always cause
 
  A) efficiency problems.
  B) equity problems.
  C) Both A and B.
  D) None of the above.

Question 2

With asymmetric information firms might be reluctant to improve the quality of their products because
 
  A) it costs them more to produce the better quality product.
  B) they are not able to completely capture the benefits of the improvement.
  C) consumers do not value the better product.
  D) consumers are better informed about the product and value the new product less.

[shaquita]

Answer to Question 1

B

Answer to Question 2

B

[vHAUNG6011]

Thank you

[shaquita]

No problemo