Suppose That There Are Only Two Types of Used Cars

question 205

Multiple Choice

Suppose that there are only two types of used cars, peaches and lemons. Peaches are worth $10,000 and lemons are worth $4,000. Without effective signals such as warranties, the owners of peaches cannot sell their cars for $10,000 because the

• A) owners of peaches cannot convince buyers that their cars are worth $10,000.
• B) buyers cannot convince owners of peaches to sell their cars for $10,000.
• C) owners of lemons cannot convince buyers that their cars are worth more than $4,000.
• D) buyers cannot convince owners of lemons to sell their cars for $4,000.

---

Definitions:

Global Environment

Refers to the international context in which businesses operate, encompassing economic, political, social, and technological factors across borders.

Strategies

Refers to comprehensive plans or sets of actions designed to achieve specific goals or objectives.

Static

Relating to or characterized by a fixed or stationary condition, lacking movement, development, or change.

Dynamic

Dynamic refers to systems or processes characterized by constant change, activity, or progress, often requiring flexible and adaptive responses.