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The structure shown below is .
Adverse Selection
A situation where sellers have information that buyers do not, or vice versa, often resulting in a market failure.
Utility Function
Represents a mathematical model in economics which shows preferences over a set of goods and services, depicting satisfaction levels of consumers.
Probability
The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.
Utility Function
A mathematical representation of how consumer preferences over a set of goods and services translate into choices given their budget constraint.
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