Recall the application about the market for free-agent pitchers and how they are similar to used cars.In the market for used baseball pitchers:

Question

Quizplus · Accepted Answer

The statement mentions that the market for free-agent pitchers is similar to the market for used cars, implying that asymmetric information leads to adverse selection in both cases. Therefore, option C is the correct answer. Option A is incorrect because free agency does not necessarily eliminate the adverse selection problem in the market for free-agent pitchers. Option B is also incorrect because there is no evidence mentioned in the statement that suggests that pitchers who switch teams are generally healthier than those who do not.

Recall the Application About the Market for Free-Agent Pitchers and How