The Lemons Problem Is Due to

question 36

Multiple Choice

The lemons problem is due to

• A) asymmetric information.
• B) moral hazard.
• C) hidden actions.
• D) symmetric information.

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Definitions:

Centralization

The concentration of authority for most decisions at the top level of an organization.

Decentralization

Decentralization refers to the distribution of decision-making authority from a central figure or location to lower levels within an organization or government, allowing for more localized and responsive decision-making.

Decision Making

The process of identifying and choosing alternatives based on the values, preferences, and beliefs of the decision-maker.

Informal Structures

Unofficial relationships and networks within an organization that influence decision-making, communication, and relationships.