Suppose in the market for used cars, buyers would be willing to pay $9,000 for a car in good condition, while buyers would have to incur a cost of $3,500 to repair a car in poor condition. Assume a risk-averse buyer is aware that some of the cars are lemons, but is uninformed about the probability of a car being in good condition or otherwise. What price would this buyer, seeking only to minimize
risk, be willing to pay for a car?
a. $3,925
b. $5,500
c. $7,775
d. $5,850
B
Economics
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If people become less optimistic about the future earnings of Hyde Park Jazz Studio, then the price of the company's stock will fall
a. True b. False Indicate whether the statement is true or false
Economics
We state that the evidence __________________ if evidence is consistent with a theory's predictions
A) fails to reject the theory B) proves the theory is correct C) proves the theory is invalid D) none of the above
Economics