Use the Following to Answer Questions

question 74

Multiple Choice

Use the following to answer questions:
Scenario: Used Car Market
In the used car market, cars of poor quality are called lemons, while cars of good quality are plums. Suppose the probability of obtaining a lemon is 60% and the probability of obtaining a plum is 40%. Also assume a plum is worth $15,000 and a lemon is worth $3,000.
-(Scenario: Used Car Market) Look at the scenario Used Car Market. If buyers cannot distinguish between lemons and plums, eventually this used car market will:

• A) be made up mostly of lemons.
• B) have buyers who will have a 50% chance of choosing a plum.
• C) be made up mostly of plums.
• D) be made up of 50% plums and 50% lemons.

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Definitions:

Communication

The process of sending and receiving symbols with attached meanings.

Countercultures

Groups in which the patterns of values and philosophies outwardly reject those of the organization or social system.

Subcultures

Groups exhibiting unique patterns of values and philosophies not consistent with the dominant culture of the larger organization or system.

Ethnic

Relating to a population subgroup with a common national or cultural tradition, often characterized by distinct language, culture, and sometimes physical characteristics.