When Consumers Possess Imperfect Information or Misinformation

Multiple Choice

When consumers possess imperfect information or misinformation:

A) there is a role for the government to intervene and mandate better outcomes.
B) firms have an incentive to reduce the information asymmetry in the market.
C) industry associations that have better information should regulate the market.
D) competitive efficiency is achieved as long as the market is unregulated.
E) less-efficient products will be driven out of the market.