Suppose That in New Crankshaft, Pennsylvania, the Quality Distribution of the 6,000

question 19

Multiple Choice

Suppose that in New Crankshaft, Pennsylvania, the quality distribution of the 6,000 used cars on the market is such that the number of used cars of value less than V is V/2.Original owners must sell their used cars.Original owners know what their cars are worth, but buyers can't determine a car's quality until they buy it.An owner can either take his car to an appraiser and pay the appraiser $400 to appraise the car (accurately and credibly) or sell the car unappraised.In equilibrium, car owners will have their cars appraised if and only if the car's value is at least

• A)$1,200.
• B)$3,000.
• C)$400.
• D)$800.
• E)$1,600.

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Definitions:

Allied Foreign

Countries or entities that are united with others through formal agreements, such as treaties, often for mutual defense or shared objectives.

Non-Democratic

Pertaining to a government or political system that does not follow the principles of democracy, often lacking free and fair elections or representation.

Ethnic Conflicts

Conflicts between different ethnic groups, often arising from issues of discrimination, cultural differences, or historical grievances.

Iraqi Military

The armed forces of Iraq, which include the Army, Air Force, Navy, and other specialized units, responsible for the defense of the country.