The Lemons Problem Occurs Mainly Because of

question 263

Multiple Choice

The lemons problem occurs mainly because of

• A) asymmetric information.
• B) a market failure.
• C) negative externality.
• D) a monopoly.

---

Definitions:

Price Discriminate

A practice where a seller charges different prices to different customers for the same product or service, often based on the willingness to pay.

Revenue

The total income generated from the sale of goods or services related to a company's primary operations.

Damaged Goods

Items that are broken, defective, or otherwise impaired, reducing their usefulness or value.

High-value Users

Individuals or entities that contribute significantly to a company's revenue, often through consistent purchases or use of high-tier services.