In the Market for Used Cars,the Lemons Problem Means That

question 90

Essay

In the market for used cars,the lemons problem means that owners of ________ cars have no incentive to offer them for sale because the market price is ________ than their marginal benefit.
A) good; more
B) bad; more
C) bad; less
D) fair; more
E) good; less

• A) good; more
• B) bad; more
• C) bad; less
• D) fair; more
• E) good; less

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Definitions:

Modern Technology

refers to the latest and most advanced technological tools, devices, and systems available for personal, business, or educational use.

Communication

The process of exchanging information, ideas, thoughts, and feelings through verbal or non-verbal means.

More Expensive

The characteristic of costing a higher price or requiring more resources or investment compared to alternatives.

Verbal Feedback

The process of giving performance-related information through spoken words to individuals or groups.