Used car dealers that provide warranties on the cars they sell are addressing the:

A. monopoly problem.
B. problem of people preferring foreign cars.
C. free rider problem of buyers preferring new versus used cars.
D. lemons problem.

Answer: D

Economics

You might also like to view...

The Eurodollar market's early growth was stimulated by the Cold War between the United States and U.S.S.R. Why?

A) Soviets feared the U.S. might confiscate dollars place in American banks if conditions of Cold War were to worsen. B) The United States didn't feel safe holding as many dollars in American banks. C) The Cold War did not stimulate the Eurodollar market's early growth. D) Developing technologies required larger money transfers than central banks could handle. E) Soviets developed a new banking system with new allies developed during the tension.

Economics

By examining the data on the 18th century market for beaver furs, we learn an important economic lesson: Intense and growing competition in the absence of appropriate ____________ fails

a. property rights b. government controls c. price ceilings d. tort laws

Economics