both (a) and (b). O None of the above is correct. Question 35 2.5 pts Which of t
ID: 1154074 • Letter: B
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both (a) and (b). O None of the above is correct. Question 35 2.5 pts Which of the following relationships involves asymmetric information? O Patients can look up information regarding certain prescription drugs giving them the same information as their doctors. O Consumer Reports allows customers of DVD players to know as much about the quality of various players as the store salesperson. O Car Fax allows car buyers to obtain used-vehicle histories providing them with the same information as the dealership salesperson O The batter in a baseball game must guess whether the pitcher is going to throw a fastball, curveball, or change-up. D Question 36 2.5 pts Moral hazard occurs when an employer closely monitors an employee.Explanation / Answer
Asymmetric information - It deals with the decisions in transactions.
Asymmetric information about the quality of used goods is an example of imperfect information. Sometime sellers know about the true quality of their products but buyers do not know that there asymmetric information occurs.
A patient can look up information regarding certain prescription drugs giving them the same information as their doctors.
In this way relationship between doctor and patient shows asymmetric information effect.
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