Question

Submit All Questions Completed 59 out of 75 0049 Question 59 of 75 > Market failure due to asymmetric information is illustrated in which situation? O A company does not list all a product's ingredients on the label. Customers buy the product, unaware that it contains harmful ingredients. Consumers buy a product labeled as foot cream, but they use it as eye cream even though there is a warning on the label to use it only on feet. Consumers seek to buy a product because it tastes good, even though they know that it contains harmful ingredients. O A company sells a product with harmful ingredients. The ingredients are listed on the label in small print,

Answer 1

A) A company does not list All a product ingredients on the label.customer buy the product unaware that it contains harmful ingredients.

This is the example of asymmetric information