Which One of the Following Is NOT True of a Thin

question 145

Multiple Choice

Which one of the following is NOT true of a thin market?

• A) It is caused by asymmetric information.
• B) There are relatively few high-quality goods sold.
• C) There may be some sellers of high-quality goods because people are in a hurry to sell.
• D) The price of the good sold will be higher than if the market were thicker.

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Definitions:

F.O.B.

F.O.B. (Free On Board) is a shipping term used in international trade to indicate that the seller is responsible for the goods until they are loaded on a vessel at the specified location, after which the buyer assumes risk.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Contract Cancellation

The legal termination of a contract's obligations by one or more of its parties.

Sales Contracts

Agreements between two parties where the seller agrees to deliver a product or service to a buyer for a specified price.