The Lemons Problem Occurs Mainly Because of

question 263

Multiple Choice

The lemons problem occurs mainly because of

• A) asymmetric information.
• B) a market failure.
• C) negative externality.
• D) a monopoly.

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Definitions:

Hierarchy Of Authority

refers to the ranked structure within an organization where each level is subordinate to the one above it.

Centralization

The process or organizational structure where decision-making authority is concentrated at the top levels of management.

Discretion

The power or right to make decisions based on one's own judgment rather than following a strict set of rules.

Functional Departmentation

The organization of a business into departments based on functions such as marketing, sales, and human resources, to enhance efficiency and specialization.