If buyers cannot assess the quality of used cars but there are warranties for cars,
A) too few lemons are sold.
B) too many good used cars are sold.
C) good used cars are sold at a higher price than lemons.
D) there is an adverse selection problem.
C
Economics
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A consumer's total utility is maximized when the total utility per dollar from all goods is equalized
Indicate whether the statement is true or false
Economics
An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Economics