If Buyers Cannot Assess the Quality of Used Cars and There

question 59

Multiple Choice

If buyers cannot assess the quality of used cars and there are no warranties,

• A) only lemons are sold.
• B) only good used cars are sold.
• C) good cars are sold at a higher price than bad cars.
• D) there is no adverse selection problem.
• E) lemons and good cars sell for the same price.

---

Definitions:

Advertising Strategy

A plan that outlines how a business will use promotions and media to communicate with its target market and persuade consumers to purchase its products or services.

Preparing Log

The procedure of recording activities, tasks, or events systematically for future reference or analysis.

Inputs And Outputs

In the context of systems or processes, inputs are the resources that are utilized (such as labor, materials, and capital), while outputs are the products or services produced.

Organizational Pressure

The force or influence within an organization that affects individuals' decisions, behaviors, and wellbeing, often resulting from internal or external expectations.