Final answer:
Imperfect information refers to situations where there is uncertainty about the qualities of products being bought or sold, leading to possible market inefficiencies.
Step-by-step explanation:
When the meaning of the information available to a manager is unclear and can be interpreted in several ways, the information is considered to be imperfect information. Imperfect information occurs in a situation where either the buyer or the seller, or both, are uncertain about the qualities of what they are exchanging.
When information about the quality of products is highly imperfect and mixed with error and nonsense, making it subject to change in time, it can lead to a market being less efficient or even to the failure of a market to exist altogether. Another related concept is asymmetric information, a situation where the seller or the buyer has more information than the other regarding the quality of the item for sale.