Part of the reason why barely used cars sell for much less than new cars is that
a. buyers and sellers have symmetric information about cars and both have less information about used cars than about new cars.
b. buyers and sellers have symmetric information about cars and both have more information about used cars than about new cars.
c. buyers have more information about used cars than sellers do.
d. sellers have more information about used cars than buyers do.
d
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Define the balanced budget multiplier and explain how it works. In your answer, ignore any supply-side effects
What will be an ideal response?
Suppose a patent is granted for a product that has the linear demand curve P = a - b Q. The constant marginal cost of producing this product is $50 per unit, a unit sells for $150, and consumers purchase 100 units of the good at that price. If the monopoly is maximizing profit, b equals
A) 1. B) 1.5. C) 2. D) 2.5.