Of the Following, the Best Example of Private Information Is

question 96

Multiple Choice

Of the following, the best example of private information is when

• A) Michael knows the price of a gallon of milk at the minimart but Michelle doesn't know.
• B) you know some of your used car's defects but a potential buyer cannot find out about them until after buying.
• C) you don't know the quality of a used car and must hire a trained mechanic who tells you all its defects.
• D) you pay the owner of a used car a little extra and she lets you know all of the car's defects.

---

Definitions:

Commodity

A basic asset deployed in commercial transactions that is exchangeable with other assets of the same classification.

Maximise

To maximize something to its utmost potential or level.

Input

The resources such as labor, materials, and capital used in the production process to produce output.

Profit

The financial surplus remaining after all expenses have been deducted from total revenue, indicative of the financial success of a business operation.