All of the following are mechanisms which reduce the adverse selection problem except ____
a. warranties from established enterprises with non-redeployable assets
b. high interest rates
c. large collateral requirements
d. brand names and product-specific promotions and retail displays
e. higher prices in repeat customer transactions
b
Economics
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The substitution effect will never induce a consumer to buy more of a good when its price increases
a. True b. False
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To differentiate its product, a monopolistic competitive firm will engage in all of the following advertising practices EXCEPT
A) direct marketing. B) mass marketing. C) interactive marketing. D) indirect marketing.
Economics