Which of the Following Is Not an Example of Asymmetric

question 62

Multiple Choice

Which of the following is not an example of asymmetric information?

• A)When someone is applying for a job, the employer checks references to determine the previous work habits of the applicant.
• B)When an employee purchases group life insurance without taking a physical exam, she knows more about her health than does the insurance company.
• C)When someone is considering buying a used car from a dealership, the dealer knows more about the true condition of the car than does the potential buyer.
• D)All of the above are examples of asymmetric information.

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Definitions:

Yield Management Principles

Strategies used in revenue management to adjust prices and inventory in response to demand, in order to maximize revenue or yield.

Sales Price

The amount of money charged for a product or service, or the value that customers are willing to pay.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Yield Management

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue from a fixed, perishable resource.