Question

Which of the following is most likely to be characterized by substantial asymmetric information?

Answer 1

Answer:

d.

Explanation:

Asymmetric information refers to when one party in a transaction has a substantial more amount of information than the other party. This being the case it can be said that the scenario that would most likely be classified as this is a wireless service that includes unlimited minutes and texting. This is because the buyer is most likely thinking that they are getting a great deal when in fact the seller/provider has access to information that the buyer does not know, which allows them to provide this deal and still make a great profit.