Suppose That There Are Only Two Types of Used Cars,peaches

question 79

Multiple Choice

Suppose that there are only two types of used cars,peaches and lemons.Peaches are worth $10,000,and lemons are worth $6,000.Three fourths of all used cars are peaches,and one fourth are lemons.In a market with no signals,for instance,a market without warranties,the average value of cars actually sold will be

• A) $6,000.
• B) $7,000.
• C) $7,500.
• D) $9,000.
• E) $10,000.

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Definitions:

Team Learning

The interaction of individual ideas and efforts toward a team objective that results in outcomes that exceed the capabilities of any individual on the team.

Learning Organization

An organization that facilitates the learning of its members and continuously transforms itself to better respond to market and environmental changes.

Individual Ideas

The unique thoughts, concepts, views, or plans that originate from a single person.

Societal-Level Developments

Large scale changes or trends that affect societies as a whole, including technological advancements, cultural shifts, and economic transformations.