One Result of Asymmetric Information in the Market for Used

question 59

Multiple Choice

One result of asymmetric information in the market for used cars is that _____

• A)few used cars are offered for sale.
• B)few lemons are offered for sale.
• C)more lemons may be offered for sale than good cars.
• D)buyers benefit at the expense of sellers.
• E)good cars sell at a price that is higher than their market value.

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Definitions:

Sole Proprietorships

A business structure owned and operated by one individual, where there is no legal distinction between the owner and the business entity.