1)What is asymmetric information and how does it affect the consumer or buyer?

2)A monopolist faces a

A. a two-tiered demand curve.

B. a perfectly elastic demand curve.

C. the market demand curve.

D. a perfectly inelastic demand curve.

1)Asymmetric information is a phenomenon that may have important negative consequences over the utility of the consumer or the buyer.

Asymmetric information is a concept that describes a situtation in which the buyer has less information regarding the attributes or quality of the good is buying. The seller, instead, does have this information (this is the asymmetry).

In consequence, the consumer or buyer has not all the necessary information to actual calculate the utitility the good would generate him.

2)The correct answer is C. the market demand curve.

Explanation: Monopolists have a market demand curve, which is downward sloping. This shows that the prices of a monopolist will not remain constant and may change when the monopolist changes its output. Monopolist price will fall when it increases its output.