Your company produces the best wireless speakers in the world. The company knows this, but the public does not.

a. Explain what asymmetric information is in general.

b. How can your firm overcome this asymmetric information problem, when they know the quality of their product is better than their competitor's, but the consumer does not know this?

c. If this solution in 12 imposes a cost on the firm, why do they do it?

d. Why does asymmetric information lead to a misallocation of resources?