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

a. a soft drink purchased in a vending machine.

b. a car wash to benefit the local high school band.

c. a collectible baseball card purchased on eBay.

d. wireless service that includes unlimited minutes and texting]

Question

Rodney Horn

Business

13 July, 12:34

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

a. a soft drink purchased in a vending machine.

b. a car wash to benefit the local high school band.

c. a collectible baseball card purchased on eBay.

d. wireless service that includes unlimited minutes and texting]

+2

Answers (1)

Know the Answer?

Adrianna Valenzuela · Answer 1

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.