(Answered) 2. Name 3 assumptions necessary for a competitive market.2. Name 3 assumptions necessary for a…

➤ How does imperfect information change competitive market outcomes?
Imperfect information leads to adverse selection, moral hazard, and price dispersion. Buyers or sellers may not know quality or costs, so markets can underprovide goods, charge risk premiums, or break down. Signaling, warranties, certification, or regulation can improve outcomes but alter pure competitive predictions.