Imperfect information on the part of buyers and sellers

A) will not stop the economy from achieving market efficiency, assuming the other conditions for market efficiency hold.
B) is no longer a problem because the "truth-in-advertising" regulations have been instituted.
C) remains a barrier to achieving market efficiency, at least in some industries.
D) cannot persist in a market economy.

Imperfect Information

A situation in which all parties in a transaction do not have the same information, leading to inefficiencies in markets.

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns on investment.

Truth-in-Advertising

Legal requirements and ethical guidelines that ensure advertising is not misleading or false, protecting consumers.