When the government makes sure that gas pumps accurately measure the amount of gas they provide, it is addressing which type of market failure? O Market power Externalities Imperfect information O Public goods Inequity
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- When markets suffer from imperfect information, it can decrease demand. (a) Why do consumers have a lower willingness to pay when they do not have enough information. (b) State one way that firms can solve this problem. (c) Explain why your answer to (b) will overcome consumers' reluctance to buy a product when they lack information.You are on the board of directors of a private high school, which is hiring new tenth-grade science teachers. As you think about hiring someone for a job, what are some mechanisms you might use to overcome the problem of imperfect information?Suppose that a large discount retailer with a lot of purchasingpower in a supply chain requires that all suppliers incorpo-rate a new information system that will reduce the cost of placing orders between the retailer and its suppliers as wellas between the suppliers and their suppliers. Suppose alsothat order quantities and lead times are related; the smallerthe order quantity the shorter the lead time from suppliers.Assume that all members of the supply chain use a continu-ous review system and EOQ order quantities. Explain the im-plications of the new information system for the supply chainin general and the inventory systems of the supply chainmembers in particular
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- Hi just wanting answer to c using the information from the first pciture. Cheersa) Suppose an insurance company decides to insure the earnings obtained by a professional tennis player (in the event of an injury), provided she does not engage in activities like skydiving or skiing. Which asymmetric information problem is the insurance company trying to avoid? b) How do insurance companies protect themselves against losses due to adverse selection and moral hazard? c) How do insurance companies price their products to solve the problem of asymmetric information?John is a consumer of Ziploc bag he buys them to store things in his kitchen true or false
