In Which of the Following Markets Is the Presence of Asymmetric

question 41

Multiple Choice

In which of the following markets is the presence of asymmetric information of little concern to the buyer?

• A)The market for used textbooks
• B)The market for used houses
• C)The market for used computers
• D)The market for used cars

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Definitions:

Liability

The state of being legally responsible or obligated to settle a debt, fulfill a contractual duty, or compensate for harm or loss.

Authorizing

The act of giving legal or formal approval for something or someone to proceed or act in a certain way.

Enforce

To compel obedience to a law, rule, or obligation through the imposition of penalties or other legal mechanisms.

Warranty Liability

Legal obligation of a seller to compensate the buyer for losses caused by defects or failures in the product warranted.