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:

Battle of the Sexes

A concept in game theory where two players (often representing different genders) have different preferences over the outcome of a game.

Matching Pennies

A classic example of a zero-sum game where two players must secretly choose between a penny facing heads or tails, with outcomes depending on whether the choices match or not.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, indicating a state of mutual best responses.

Simultaneous Game

A strategic situation in which each player makes decisions at the same time, without knowledge of the other players' actions.